C21 Investments Q3 2023 Revenue Declines 9.2% YoY, What About Net Income?

C21 Investments Inc. CXXIF CXXI released its interim financial statements for the third quarter ended October 31, 2022, revealing revenue of $7.2 million, an unfavorable decrease of 9.2% compared to $7.9 million in Q3 2021.

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Q3 Financial Highlights

• Gross profit was $3.9 million, an unfavorable decease of 12.3% compared to $4.5 million in Q3 2021.

• Gross margin of 54.2%, compared to 56.1% in Q3 2021.

• Adjusted EBITDA of $2.2 million – a 30% EBITDA margin, in line with the previous three quarters.

• Net income of $248,507, an unfavorable decrease of 91.2% compared to $2.8 million in Q3 2021.

• Total liabilities reduced by $1.0 million; $3.3 million year-to-date.

• Cash at the end of Q3 was $2.3 million, flat from Q2.

"We are pleased to once again report strong results, generating another profitable bottom-line and positive cash flow quarter, despite continued industry and macro headwinds," stated CEO and president, Sonny Newman. "The Nevada market experienced a 14.7% decline in cannabis sales quarter-over-quarter. However, our stable revenue and high margin profile highlight our ability to mitigate state-level and industry pricing pressures. The recent industry shift to a focus on generating positive cash flow further validates our stated strategy of deleveraging our balance sheet and generating meaningful cash flow. This focus over the past three years has us well positioned to take advantage of strategic opportunities in the current environment that will create value for our shareholders."

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Photo by Giorgio Trovato on Unsplash

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