Fire & Flower Holdings Corp. (OTCQX:FFLWF) (TSX:FAF) released its financial and operational results for the fiscal 2023 first quarter ended March 31, 2023, revealing revenue of CA$43.1 million ($32 million) for Q1 2023, representing a 5.3% increase from CA$40.9 million in Q1 2022.
Note on Prior Year Comparative Period
As at December 31, 2022, the company's fiscal year was changed from a 52 or 53-week period ending the Saturday closest to January 31 to a calendar 12-month period ending December 31 to enhance comparability of its periodic financial statements with those of its peers. Accordingly, the information presented here, the interim financial statements, and the management's discussion and analysis reflect the results for the calendar quarter ended March 31, 2023, while the comparative figures reflect the 13-week period ended April 30, 2022 ("Q1 2022").
Q1 2023 Financial Highlights
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Gross profit of CA$12.5 million (28.9% of revenue) for Q1 2023, representing an increase of 2.4% from CA$12.2 million (29.7% of revenue) in the prior year comparative period, primarily contributed by an increase in gross profit in the digital segment.
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Adjusted EBITDA of negative CA$1.8 million for Q1 2023, an improvement of 22.5% compared with negative CA$2.3 million for Q1 2022.
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Net loss of CA$10.1 million for Q1 2023 compared with net loss of CA$9.9 million in Q1 2022, including restructuring and impairment charge of CA$1.7 million and nil for prior year.
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Cash and cash equivalents balance of CA$8.2 million at the end of Q1 2023.
"Our first quarter of 2023 is a clear demonstration of our continued discipline on delivering positive improvements in our overall operational results. Once again, we saw same-store sales and gross margin growth. As we look towards 2023 as a transformational year, the company is focused on our core retail business, supported by Hifyre which enables us to deliver higher gross margin percentages and the best available products to our customers," stated Stéphane Trudel, CEO of Fire & Flower.
"Our continued innovation and long-term focus is demonstrated through the recent launch of the Spark Marketplace mobile app that allows customers to shop with ease and has already produced significantly larger transaction amounts than in-person transactions. Consolidation opportunities in the industry that are fully accretive to our business are a key priority as we look to a long-term goal of achieving 10% market share. While keeping our eye on our long-term vision, our teams are working diligently to generate savings in SG&A expenses by simplifying our business and building value in core assets," concluded Trudel.
Photo by Esteban López on Unsplash
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