Kiaro Holdings Corp. (TSXV:KO) (OTC:KIARF) reported its financial results Friday for the three and nine months ended Oct. 31, 2021.
The Vancouver-based company revealed a year-over-year increase of 44% in revenue for the third quarter and 59% for the nine months.
Moreover, with the closing of the acquisition of Hemisphere Cannabis in September and the previously announced closing of Cozy Cannabis deal in July, Kiaro has strengthened its presence in Ontario, including prominent Toronto and Ottawa centers.
The acquisition of Hemisphere Cannabis expanded the company's retail footprint by seven operational retail stores, bringing over 60 employees onboard.
The additional municipal licensed locations set to open by the end of the fiscal year would bring the total number of operating stores to 17 stores across three provinces.
"Our team has delivered significant value to shareholders with the acquisition and skillful integration of Hemisphere into the Kiaro family," Daniel Petrov, CEO of Kiaro said. "In addition, our investors have supported a successful raise of $3.7M to support the company's efforts to actualize the value from our 2021 acquisitions. On top of this success, teams across Wholesale, Retail, and eCommerce delivered outstanding financial results."
Q3 2021 Financial Highlights
- Revenue totaled CA$7.5 million ($5.86 million), compared to CA$5.2 million in the prior year's period, up by 44%, and with a 29.3% gross margin.
- Gross profit amounted to CA$2.2 million, versus CA$1.56 million in the same quarter of 2020.
- Operating expenses were CA$3.26 million, representing a year-over-year increase of 40%.
- Loss from operations was CA$ 1.06 million, up by 41% from the prior year's period.
- Net loss and comprehensive loss totaled CA$1.08 million, compared to CA$2.9 million in the same quarter of last year.
- As of Oct. 31, the company had positive working capital of CA$4.6 million.
Nine-Month Period Financial Highlights
- 51% Increase in retail revenue.
- 24% Increase in retail same-store sales.
- 38% retail margins retained during the quarter and year-to-date.
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Photo: Courtesy of Chris Briggs on Unsplash
