RE:RE:awful is the word JF - the impairment was going to happen in Q4 - it just came a Q early. Besides - fire wouldn't have any vapes, oils or any 2.0 products without blissco. If we had 2 mil more rev but same losses - we would be talking about a good quarter.
Let me give you some perspective good and bad:
8% increase in revenue Q over Q
23% decrease in expenses Q over Q (which is huge)
your looking at a 31% flip to the positive this quarter - not all gains are tied to revenue exclusively.
If you read the first paragraph of the release - heres a good snippet for Q4 -
"We expect to continue to see improvements to our cost structure as we realize further production efficiencies at our completed facilities and anticipate improved recreational sales with our enhanced product portfolio."
I had a good talk with IR today.
Im not happy in the least. But they did say that despite significant cost cuts - their costs are actually going to continue to go down in Q4.
The rub is they have very poor market penetration in stores across canada - and they expect this to improve with h and f this Q. on top of the expanded portfolio of products.
new products are selling well - good demand.
Beena is "impressive" - plan is to get production to full tilt - and hammer rec sales where possible - and if the rec sales are not there - they will get sales in the wholesale market.
THe BAD:
5.75 mil in rec revenue this quarter. 0.7 mil was a future price adjustment (so 6.5 actual) even with the pre-rolls and expansion in quebec.
To me that's whats awful. Thats basically no growth - so I would love to know what on gods green earth they were doing to expand rec sales this q.
I get h and fume did an audit in march and sales are "incrimental" trikle store by store - but where was that 170% increase in volume sales right?
This Ship is attatched to Beena Goldenberg right now - and I hope she is as capable and experienced as they say.
I expect a better Q4 no doubt - but my prognostication days are over - I need to see it to believe it.