Wildflower Posts Q3 Revenue of $5.3M, Records 112% YoY Growth

Canadian cannabis company Wildflower Brands Inc. (CSE:SUN) (OTC: WLDFF) disclosed that its quarterly revenue reached $5.3 million. That's a year-over-year increase of approximately 112%.

However, the company's third-quarter revenue decreased sequentially by roughly 3.6%, according to Tuesday's earnings report.

During the third quarter, the Vancouver-based company posted a net gain of $101,435 compared to a $1 million loss in the corresponding quarter of 2019.

Other quarterly financial results the company posted include:

• Cost of goods increased by 75% in one year, reaching around $2.6 million in this quarter
• Consulting and management fees decreased by roughly 47% to $88,477 compared to the same quarter of 2019
• Advertising and marketing costs were down by 92.5% amounting $11.910
• General office and miscellaneous expenses of $202,186, up by 120% compared to the same quarter last year
• 227% year-over-year increase of interest expense totaling $620,882
• Foreign exchange loss of approximately $1.2 million compared to the loss of $ 177,284 during the third quarter of last year
• The considerable third quarter foreign exchange loss represents transactions of Wildflower's foreign subsidiaries utilizing other currencies

Last year, Wildflower — which focuses on the development and branding of plant-based health and wellness products — purchased City Cannabis Corp. for $45 million.

The acquisition of a cannabis retailer, which is a holder of three (out of eight) licenses to sell cannabis in Vancouver and the only company with four licenses in British Columbia, provided Wildflower with a broader customer base.