Christina Lake Cannabis Corp. (OTCQB:CLCFF) (CSE:CLC) (FRANKFURT:CLB) released its financial results for the first quarter ended February 28, 2023, revealing revenue of CA$1.9 million, an increase of 16% compared to CA$1.7 million in Q1'22.
Q1 FY 2023 Financial Highlights
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Gross margin of CA$616,464 or 32.2% before fair value adjustments, compared to CA$907,870 or 54.9% in Q1'22.
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Gross profit of CA$127,201 or 6.6% of revenue, compared to CA$680,529 or 41.1% of revenue in Q1'22.
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Loss and comprehensive loss in Q1'23 was CA$1.2 million which is a CA$440,000 increase from Q1'22 loss of CA$770,000.
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As at February 28, 2023, the company had working capital of CA$2.2 million which consisted of cash of CA$1.5 million, receivables of CA$1.1 million, prepaid expenses of CA$45,570, inventory of CA$5 million. Current liabilities, being accounts payable and accrued liabilities, current portion of loan and current portion of convertible debentures, CA$5.6 million.
"Q1 has continued on the growth trajectory we established in fiscal 2022, while demonstrating the typical seasonality we expect in the first quarter" stated Mark Aiken, CEO of Christina Lake Cannabis. "As the industry continues to face headwinds, our organization remains focused on delivering strong results, optimizing our operations and growth. Actual Q1 distillate shipments increased by 80% compared to Q1 2022, creating revenue growth of 16% despite the market price compression.
The management team has been focused on strategic initiatives including:
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Expanded production capacity of industry leading distillate;
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New product introductions (pre-rolls and infused pre-rolls, kief, hash, and infused hash);
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Expanded customer base; and
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Turnkey formulations.
Going forward, all signs point to continuing strong quarterly demand, sales growth, and strong performance as we continue to march towards our FY2023 goals."
Photo: Benzinga edit with photo by Kindel Media on Pexels
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