Canada House Cannabis Reports Record Revenues, $15M Loss As It Changes FY End

Canada House Cannabis Reports Record Revenues, $15M Loss As It Changes FY End

Canada House Cannabis Group Inc. CHV reported on Monday its financial results for the 15 months ending July 31, 2022.

The company changed its financial year end from April 30 to July 31 earlier this year, and the annual audited financial statements for this transition year are for a 15-month period which includes the three months starting May 1, 2022, to July 31, 2022.

The company reported record revenues for both the recreational and medical cannabis segments.

It's a "trend that we expect to continue and will directly impact CHV's bottom line as we make further progress to optimize our low-cost cultivation at CHV's wholly owned subsidiary, IsoCanMed Inc.," Chris Churchill-Smith, CEO of Canada House, said.

Financial Highlights For The 15-Month Period

  • Net revenue was CA$26.6 million ($19,7 million) for the 15-month period, an increase of CA$16.1 million or 153%, compared to CA $10.5 million during the year ended April 30, 2021.
  • Cash flow used in operating activities in the 15 months was CA$1.52 million, down 55% from CA$3.35 million during the year ended April 30, 2021.
  • Net cash provided by financing activities in the 15 months was CA$2.3 million, a decrease of CA$1.8 million or 44% compared to CA$4.08 million during the year ended April 30, 2021.
  • Loss and comprehensive loss for the 15-month period was CA$11.09 million, an improvement of CA$272 000 or 2% compared to a loss of CA$11.36 million during the year ended April 30, 2021.
  • Loss and comprehensive loss for the 15-month period ended July 31, 2022, included a one-time inventory impairment of CA$ 4.23 million.
  • Shareholder's equity was a deficit of CA$3.75 million compared to an equity of CA$6.87 million as of April 30, 2021.

Financial Highlights For Three Months Ending July 31

  • Net revenue of CA$5.86 million, an increase of CA$1.84 million or 46%, compared to CA$4.02 million in the same quarter of last year.
  • Loss and comprehensive loss of CA$1.3 million, an improvement of CA$1.3 million or 50%, compared to $2.57 million in the same quarter of last year.
  • Loss and comprehensive loss for the three months ended July 31, 2022, included the one-time inventory impairment of CA$ 228 000.
  • Adjusted EBITDA of CA$83 000 of loss, an improvement of $679 or 89%, compared with CA$762 000 for the three months ended July 31, 2021.

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Posted In: Chris Churchill-SmithfinancialspremiumCannabisEarningsNewsMarkets

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