The Valens Company Reports Fourth Quarter Results Provincial sales net revenue increased 31.7% to $7.9 million in Q4 2021 compared to $6.0 million in Q3 2021
Canada-wide provincial listings increased 21.0% to 219 in Q4 2021, compared to 181 in Q3 2021, with further growth to 255 as of January 30, 2022
Adjusted gross profit margin increased significantly to 34.1% in Q4 2021 compared to 27.4% in Q3 2021
B2C revenue lines of provincial sales and Green Roads accounted for 73.9% of net revenue in Q4 2021
Valens expects to achieve positive adjusted EBITDA by Q4 2022
KELOWNA, BC, Feb. 28, 2022 /PRNewswire/ - The Valens Company Inc. (TSX: VLNS) (Nasdaq: VLNS) (the "Company", "The Valens Company" or "Valens"), a leading manufacturer of cannabis products, is pleased to report its fourth quarter and fiscal year financial results for the period ended November 30, 2021.
Tyler Robson, Chief Executive Officer, Co-Founder and Chair of The Valens Company, said: "This quarter showcases the progress we have made in our business plan in key areas despite a competitive and challenging operating environment in Canada and globally. Net revenue slightly declined quarter-over-quarter as we completed the transition of our B2B business to align with the 'fewer, bigger, better' strategy and was negatively impacted by the floods in British Columbia which resulted in supply chain disruptions. However, in our two key revenue segments, we are very pleased with the industry leading growth in provincial sales revenue and the full quarter revenue generated by our Green Roads US CBD business. With the B2B transition largely behind us, we expect to have more sustained growth in 2022."
Robson continued, "A bright spot in the quarter was our adjusted gross profit margin which increased from 27.4% in Q3 2021 to 34.1% in Q4 2021. I am very proud of our operations and logistics teams which have had to deal with a significant business transition over 2021 as well as automation delays, inflationary cost pressures, supply chain disruptions, and the flooding in British Columbia. With further automation and our recently announced integration initiative, we are now heading down the path towards profitability. This supports our confidence and commitment to achieving both positive adjusted EBITDA by Q4 2022 and our revenue guidance for 2023 of at least $225 million."