SLANG Worldwide Inc. SLGWF SLNG released financial results for the three months ended March 31, 2023, revealing revenue from continuing operations was CA$10.82 million, ($8 million) an increase of 29% compared with CA$8.37 million in Q1 2022. The primary drivers of the increase were due to an increase in the company’s core market sales of CA$2.05 million in Vermont and CA$780,000 in Colorado, offset by a reduction in emerging market sales. The increase in Vermont was driven by the opening of the company's CERES Collaborative dispensary on October 1, 2022.
Q1 2023 Financial Highlights
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Gross profit of CA$5.72 million (53% gross margin) in Q1 2023, compared with CA$3.66 million (44% gross margin) in Q1 2022, representing a 56% increase year-over-year.
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Adjusted EBITDA of CA$740,000 in Q1 2023, compared with negative CA$1.64 million in Q1 2022. The improvement in adjusted EBITDA is primarily attributable to a CA$2.04 million increase in gross profit before fair value adjustments of biological assets. Further reductions in operating expenditures such as consulting and subcontractors also contributed to the improvement in adjusted EBITDA.
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CA$11.67 million in cash and restricted cash on March 31, 2023, compared to CA$11.92 million on December 31, 2022.
"SLANG's results from Q1 FY2023 again demonstrated the strength of the SLANG business model and our ability to thrive in the country's most competitive cannabis markets, and create a differentiated financial profile. By operating in a flexible and scalable manner to effectively compete in each specific cannabis market where we operate, we have now produced positive adjusted EBITDA, our first quarter of positive EBITDA, our second consecutive quarter of positive operational cash flow, and our highest quarterly adjusted margins to date, of 52%. We anticipate this positive momentum to continue through fiscal 2023 as we further elevate our market position and continue to drive top and bottom-line results," stated John Moynan, CEO of SLANG.
Photo by Tim Foster on Unsplash .
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