Fire & Flower Holdings Corp (OTCMKTS:FFLWF) has released its operational and financial results for the thirteen weeks ended October 31, 2020, in which the company hit a milestone achievement with positive EBITDA of $1.2 Million.
Total revenue grew 142% YoY
The company reported total revenue of $33.1 million which was a 142% YoY increases and 15.8% sequential quarter increase at a gross profit of 34.7%. During the period there was considerable growth in wholesale distribution operations, Open Fields revenue which contributed $1 million of the gross profit. The Hifyre™ digital analytics platform reported significant growth of 55.8%.
Fire & Flower has continued to enhance its business practices in the wake of the pandemic as consumer preferences and behaviors change by focusing on customer safety with a digital sales service model. The company has asserted its leadership position in the Canadian cannabis retail markets with 71 licensed cannabis retail stores. The stores include four accessory stores currently shut temporarily of COVID and 67 operating cannabis retail outlets.
Fire & Flower is a multi-brand operator
Following the acquisition of Friendly Stranger Holdings Corp, the company became a multi-brand cannabis retail operator. The acquisition includes Friendly Stranger™, Hotbox™, and Happy Dayz™ brands with around 21 retail stores in Ontario. The company also received shareholder approval during the quarter for amendment of its strategic investment agreement by Alimentation Couche-Tard (“ACT”) wholly-owned subsidiary. Fire & Flower received $10.3 million from the exercise of warrants by Alimentation Couche-Tard. Also, the company commenced an at-the-market equity program to raise around $15 million in financing to support growth opportunities.
With people preferring home delivery in the Peel and Toronto regions the company responded by launching e-commerce capabilities via the Hifrye platform. The Hifyre Sparks Perks™ program gains over 38,000 members and at the beginning of the third quarter, the program had around 183,000 members. Fire & Flower launched Hifre Spark and Hifyre Reach during the quarter.
The company’s CEO Trevor Fencott said that the positive EBITDA is a massive milestone for the company in its part to deliver its objectives.
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