1933 Industries Announces First Quarter 2023 Financial Results and Reports Record Revenue of $5.64 Million
VANCOUVER, BC / ACCESSWIRE / December 28, 2022 / 1933 Industries Inc. (the “Company” or “1933 Industries”) (CSE:TGIF)(OTCQB:TGIFF), a Nevada-focused cannabis packaged goods company, is pleased to announce its first quarter financial results (“Q1 2023” ) For the three months ended October 31, 2022 and 2021 (“Fiscal 2023”). All amounts expressed are in Canadian dollars.
The Company owns 91% of the Alternative Medicine Association (AMA), the Company’s cultivation and manufacturing subsidiary focused on the cultivation and sale of cannabis products for medical and adult use, and 100% of the manufacturer of CBD products Infused MFG LLC (Infused ). The company’s revenue is derived from wholesale cannabis sales in Nevada (AMA) and from the sale of hemp-derived packaged consumer goods (Infused) under Canna Hemp™ brand sold throughout the US through e-commerce at cannahemp.com
Q1 2023 financial highlights
Total revenue of $5.64 million, marking a record for the highest quarterly revenue in the Company’s history
Gross margin of $2.0 million before fair value adjustments
Adjusted EBITDA revenue of $0.1 million
Top 10 Selling Cannabis Brands in Nevada
Consolidated operating highlights
Total revenue was $5.64 million for the first quarter of 2023 and $2.5 million for the first quarter of 2022, achieving the best quarterly revenue in the Company’s history. The company achieved a 129% increase in revenue compared to the same period in fiscal year 2022 and a 116% increase compared to $2.6 million during the previous quarter (Q4 2022).
The company’s hemp-infused consumer packaged goods subsidiary posted comparable year-over-year revenue in fiscal 2022 with positive gross margins. Overall, demand for hemp-infused products remains subdued due to lower wholesale demand at dispensaries and brick-and-mortar accounts, macroeconomic headwinds, and increased competition due to the low barrier to entry for the products. infused with hemp.
Gross margin and profitability
For the three-month period ended October 31, 2022, gross margin was $2.0 million before biological asset transformation fair value adjustments, compared to $0.6 million during the same period last year. Excluding $1.3 million in fair value adjustments, the Company was profitable in the reporting quarter. The decrease in gross margin was attributed to a decrease in the price of flowers in Nevada.
Expenses were $1.4 million for the first quarter of 2023 and $1.9 million for the first quarter of 2022. It is a priority of the Company’s executive management to continue to reduce costs without compromising revenues.
General and administrative expenses were $347,676, compared to $371,176 during the first quarter of 2022. The balance is stable over the period, based on the Company’s level of operations.
The net loss was $1.2 million for the first quarter of 2023 and $0.9 million for the first quarter of 2022. The increase was primarily due to a decrease in the fair value adjustments of biological assets.
Adjusted EBITDA was $0.1 million for Q1 2023 compared to a loss of $0.3 million for Q1 2022.
Paul Rosen, Chairman and CEO of 1933 Industries commented, “We are pleased to announce measurable operational results. The Company achieved the highest quarterly revenue in the Company’s history, recorded positive adjusted EBITDA and increased gross margins before value adjustments right, showing that the Company is on the right track. AMA brand products regularly rank as the best-selling cannabis products in Nevada. Strategic relationships with wholesale distributors, the highest volume of cannabis products and a disciplined approach to lowering of expenses have led to a strong quarterly performance. Although competitive wholesale flower pricing pressure continues to affect Nevada growers, the measures we have implemented have resulted in significant progress toward executing our goals.”
The financial statements are prepared in accordance with International Financial Reporting Standards. Detailed information regarding the Company’s financial results, as well as management’s discussion and analysis can be found at https://sedar.com/ and https://1933industries.com/investors/financial-information
Please note the following financial release dates in accordance with the ongoing disclosure schedule set forth by the British Columbia Securities Commission:
Financial release dates 2023
April 3, 2023
June 29, 2023
November 28, 2023
About 1933 Industries Inc.
1933 Industries is a Nevada-based, growth-oriented company focused on cultivating and manufacturing a large portfolio of cannabis packaged goods in a variety of formats for both the wholesale and retail markets. Its product offerings include: THC flower, pre-rolls and products under the AMA and Level X brands for the Nevada market; Canna Hemp™, the national cannabidiol (CBD) brand of infused health products, including tinctures, gums, soil and sports recovery products. The Company owns 91% of the Alternative Medicine Association, LC (AMA) and 100% of Infused MFG LLC (Infused).
About the Alternative Medicine Association
AMA is a licensed medical and adult cannabis cultivation and extraction subsidiary that produces its own branded line of unique cannabis products. AMA’s extensive menu of cannabis products includes: artisan cannabis flowers, pre-rolls, full-spectrum oils, premium distillates, proprietary blends of terpenes, vapor products and boutique concentrates such as chops, flakes, pastes, sugar wax, diamonds and living resin. . The ultra-craft brand Level X is an exclusive collection of exotic strains, specially selected for their distinct terpene profiles, high levels of THC and flavonoids. With state-of-the-art cultivation and extraction facilities based in Las Vegas, Nevada, AMA seeks to provide medical patients and recreational users alike with a cannabis experience that is exceptional, potent and consistent in quality. www.amanev.com
AMA is also licensed in Nevada as an adult cannabis distributor.
About Canna Hemp™
With over 65 products in its portfolio, the Canna Hemp™ brand offers products in a variety of verticals and consumption formats, including, effects-based tinctures, novel substances, vape pens and cartridges, gum and capsules for sleep, relief, calm , focus. and Energy. High-grade CBD and a proprietary blend of terpenes formulated for specific effects are key differentiators for the Canna Hemp™ line. The company recently introduced the previously untapped cannabinoids Cannabigerol (CBG) and Cannabinol (CBN) to its product portfolio with a new line of natural tinctures and gums.
For more information please contact:
Alexia Helgason, VP, IR, Marketing, Media
Paul Rosen, CEO
Neither the Canadian Stock Exchange nor its Regulation Service Provider (as that term is defined in Canadian Stock Exchange policies) accepts responsibility for the adequacy or accuracy of this publication.
Notice Regarding Forward-Looking Statements: This news release contains forward-looking statements. The use of any of the words “anticipate,” “continue,” “estimate,” “expect,” “may,” “will,” “project,” “should,” “believe” and similar expressions are intended to identify forward – statement in search. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will be accurate. Because forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. These statements speak only as of the date of this announcement. Actual results may differ materially from those currently anticipated due to a number of factors and risks including various risk factors discussed in the Company’s disclosure documents, which can be found under the Company’s profile at www.sedar.com. 1933 Industries undertakes no obligation to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
SOURCE: 1933 Industries Inc.
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