Fire & Flower Reports 51% Increase In Q2 2021 Revenue, Fifth Consecutive Quarter Of Positive Adjusted EBITDA

Cannabis company Fire & Flower Holdings Corp. (TSX: FAF) (OTCQX: FFLWF) reported on Tuesday its financial and operational results for the second quarter of 2021, revealing a  51% year-over-year increase in revenue to CA$43.3 million ($34.2 million).

Moreover, the Toronto-based company revealed that the quarter ended July 31 was the fifth consecutive quarter of positive adjusted EBITDA which totaled CA$3.1 million, up by 176% year-over-year.

"Our unique capability to apply today's most advanced technology for collecting consumer buying behaviors to deliver the strongest e-commerce experience is an invaluable asset in our industry," Trevor Fencott, the company's CEO, disclosed. "We are extremely pleased to be entering a new stage of our growth as we continue to leverage and monetize our tech-enabled platform to expand upon our leadership position and enter new growth markets utilizing an asset-light, highly scalable e-commerce model."

Q2 2021 Financial Highlights

• Total gross profit CA$16.2 million, or 37.3% of revenue, compared to total gross profit of CA$10.0 million, or 34.8% of revenues in the second quarter of 2020.
• The total debt on July 31 was CA$3.8 million.
• Cash and short-term investment balances were CA$29.3 million.
• Net income totaled CA$19.5 million compared to a roughly CA$29 million loss in the same period of last year.
• Retail revenue increased by 36.3% year-over-year to CA$31.8 million.
• Same-store sales decreased 14% for 48 stores in operation during the comparable period in Q2 2021 due to a surge in newly licensed retail cannabis stores in Ontario.
• Wholesale revenue increased by 81.3% year-over-year to CA$7.8 million.
• Hifyre Digital Retail and Analytics Platform generated CA$3.7 million in revenue for the quarter, representing a 293% year-over-year growth.

Q2 2021 Corporate Update

• Matthew Hollingshead, president of Hifyre, was named chief innovation officer.
• The company's strengthened strategic partnership with Alimentation Couche-Tard Inc. as they exercised warrants increasing their total ownership stake in Fire & Flower to 22.4%
• Entered partnership with Humble & Fume to offer an expanded catalog of their portfolio of products to Fire & Flower customers across North America, both online and in-store.

Recent Moves

In August, Fire & Flower and its subsidiary Hifyre Inc. said they are looking to acquire certain assets from subsidiaries of Wikileaf Technologies Inc. (CSE: WIKI) - an online platform for cannabis consumers and enthusiasts - in a $7.5 million all-stock deal.

Shortly after, the company debuted in California via its strategic affiliate American Acres Manager, which has rebranded to "Fire & Flower U.S. Holdings." The first Fire & Flower branded store has kicked off cannabis sales in Palm Springs at 4810 E Camino Parocela.

Price Action

Fire & Flower's shares traded 0.60% higher at $0.7268 per share at the time of writing Tuesday morning.

Photo: Courtesy of Nataliya Vaitkevich from Pexels