Nevada-focused cannabis consumer packaged goods company 1933 Industries Inc. (CSE:TGIF) (OTCQB:TGIFF) announced its first-quarter financial results for the three months ended October 31.
Paul Rosen, chairman and CEO of the Vancouver-based company said 1933 Industries “continued to make strategic cost reductions across all divisions, with the goal of achieving consistent profitability.”
Q1 2022 Operating Financial Highlights
- Total revenues were CA$2.5 million ($1.98 million), compared to CA2.7 million in the same quarter of 2021.
- Expenses totaled CA$1.9 million versus CA$3.5 million for the first quarter of the last fiscal year, representing a decrease of 45%.
- The gross margin was CA$1.1 million or 45%, compared to CA$0.7 million or 27% for the corresponding period of 2021.
- Net loss from continuing operations was CA$0.9 million versus a net loss of CA$2.8 million for the first quarter of 2021, an improvement of 66%.
- Adjusted EBITDA loss was CA$0.3 million versus to adjusted EBITDA loss of CA$1.4 million for the same period of 2021, up by 78% year-over-year.
- As of October 31, cash was CA$3.2 million, compared to CA$4.4 million on July 31, representing a decrease of 27%.
- Total assets at October 31, were CA$44.6 million, compared to CA$45.4 million on July 31, 2021.
- On October 31, working capital was a surplus of CA$3.5 million, compared to a working capital surplus of CA$8.4 million on July 31, 2021, a decrease of 58%.
“The Company believes that softening sales were due to changing employment patterns in Nevada, a resurgence of Covid-19 and corresponding social distancing and mask mandates, and the increase of low-priced flower flooding the market,” Rosen explained. “To combat and rectify these issues, the Company has readjusted its pricing strategy to meet market demands, continues to increase shelf space with sought-after flower strains and in-demand infused pre-rolls, and recruited and installed an improved leadership team covering sales and cultivation under the direction of Ms. Ester Vigil and Mr. Steve Licon, both leading professionals in the Nevada cannabis market.”
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TGIFF Price Action
1933 Industries Inc.’s shares traded 12.48% higher at $0.0329 per share at the time of writing on Monday.
Photo: Courtesy of Markus Winkler on Unsplash