Valens Shares Slightly Up On Declining Quarterly Revenue

The Valens Company Inc. VLNS VLNS reported Thursday its third quarter fiscal year 2022 financial results for the period ended August 31, 2022, revealing net revenue of CA$20.3 million ($14.1 million), down by 15.4% from CA$24.0 million in the previous quarter.

Quarterly Highlights

  • Despite the decline in net revenue quarter-over-quarter, adjusted gross profit increased by CA$0.9 million in Q3 2022 to CA$5.1 million from CA$4.1 million in Q2 2022.

  • Adjusted EBITDA was a loss of CA$9.8 million, compared to a loss of CA$15.9 million in the previous quarter.

  • Net loss amounted to CA$27.5 million or CA$0.34 per share, versus a loss of CA$160.8 million or $2.13 per share in the second quarter.

  • Cash flow from operations for Q3 2022 was CA$(7.6) million, a significant CA$12.2 million or 61.7% improvement quarter-over-quarter, strongly beating previous guidance of CA$(9) million to CA$(12.5) million.

  • Provincial sales increased 22.8% to CA$11.3 million in Q3 2022 from CA$9.2 million in Q2 2022. The increase was primarily driven by higher demand of our newly launched branded products across our brand portfolio.

  • International revenue and other revenue (including Valens Labs and Pommies Cider) declined in the quarter to CA$0.7 million as orders are lumpier.

"Our third quarter results clearly show that we are executing on the most important initiative in this environment which is cash flow,” stated Tyler Robson, chief executive officer of The Valens Company. “We are continuing to realize the benefits of our previously announced Integration Initiatives, with a significant decrease in our cash burn, which not only exceeded our previously stated guidance range but was down approximately 62% quarter-over-quarter, despite lower net revenues,"


In light of the proposed acquisition of the Company by SNDL SNDL, Valens is withdrawing all previously given financial guidance as such financial guidance is no longer appropriate under the circumstances.

Price Action

The Valens’ shares traded 6.06% higher at $0.7 per share during Thursday pre-market session.

Related Links

SNDL To Buy Valens For $105M In Stock Creating Cannabis Behemoth

The Valens Company Nominates Independent Director To Board Of Directors

Photo: Courtesy of Kindel Media by Pexels and gerald by Pixabay

Market News and Data brought to you by Benzinga APIs
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: CannabisEarningsNewsPenny StocksSmall CapMarketsTyler Robson
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

The Benzinga Cannabis Capital Conference is coming to Florida

The Benzinga Cannabis Capital Conference is returning to Florida, in a new venue in Hollywood, on April 16 and 17, 2024. The two-day event at The Diplomat Beach Resort will be a chance for entrepreneurs, both large and small, to network, learn and grow. Renowned for its trendsetting abilities and influence on the future of cannabis, mark your calendars – this conference is the go-to event of the year for the cannabis world.

Get your tickets now on – Prices will increase very soon!