Heritage Cannabis Q1 FY23 Revenue Declines 3.3% To $4.7M, What About Profit?

Heritage Cannabis Holdings Corp. HERTF CANN Q1 2023 net revenue was CA$6.3 million ($4.7 million) a decrease of 3.3% compared to CA$6.5 million in Q1 2022.

Q1 2023 Financial Highlights

• Gross profit was CA$2 million compared to gross margin of CA$1.9 million in Q1 2022.

• Gross margin was 32% compared to gross margin of 28% in Q1 2022.

• Net loss was CA$2.8 million compared to net income of CA$6.2 million in Q1 2022.

• Cash at the end of the period was CA$6.3 million.

• Comprehensive loss of CA$2.8 million or CA$0.00 loss per share compared to a comprehensive income of CA$6.3 million or CA$0.01 income per share for the three months ended January 31, 2022.

“In a traditionally slow period, we are very pleased to have achieved gross margin growth - evidence our continued focus to lower our operational costs has been effective. Even with a number of our achievements expecting to positively impact our operations in the coming months, such as our Thrifty brand launch and U.S. investments, we are continuing to remain focused on cost management while improving our market penetration in our core markets”, stated David Schwede, CEO of Heritage.

“While this past quarter we saw provincial pricing that negatively impacted our results, we feel the majority of this reset is now behind us and we can focus on continued growth by leading in market innovation, focusing on growing our entire portfolio of in-demand products. With our U.S. strategy ramping up and early indications showing positive results ahead of expectations, we are well positioned to see an up-trend in the business in 2023.”

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