Q2 2021 Record Revenue of $11.3MM Mankind Dispensary Acquisition yields substantial returns
SAN DIEGO, CA / ACCESSWIRE / August 31, 2021 / GABY Inc. ("GABY" or the "Company") (CSE:GABY)(OTC PINK:GABLF), a California consolidator of cannabis dispensaries and the parent company of San Diego's Mankind Dispensary ("Mankind Dispensary"), is pleased to announce record second quarter revenue of $11.3 million and record gross profit of $3.9 million compared to $0.7 million and $0.0 million, respectively, the same quarter last year.
Gross margin for the period was a record high of 35.0% and compares to 2.9% the same quarter last year. Adjusted EBITDA(1) improved to $0.9 million from negative $1.6 million the same quarter last year. The improvements were primarily attributable to the higher volumes and margins generated from the acquisition of Mankind Dispensary on April 1, 2021.
For the second quarter of 2021 the net loss was $1.6 million compared to a net loss of $1.7 million with the increase in Adjusted EBITDA being mostly being offset by an increase in income tax expense on taxable operations and higher interest expense on the notes issued in respect of the Mankind transaction.
While significantly improved over Q2-2020 and over last quarter, Adjusted EBITDA numbers were negatively impacted mostly from operating two distribution entities, which, as of August 2021, have been consolidated into a single hub in the Company's new headquarters in San Diego. GABY will continue to rationalize its asset base and expects to shed further costs thereby improving Adjusted EBITDA in the future.
"I'm thrilled by the immediate and notable success we are seeing from our acquisition of Mankind Dispensary, and the launch of our cannabis brand, Kind Republic, which we are anticipating will reach $2 million in gross sales by the end of the year," said Margot Micallef, Founder, and CEO of GABY. "We are projecting sustainable growth across key metrics as we move forward with our plans to add more dispensaries to the GABY retail portfolio as well as continuing to improve operational efficiencies and extract further synergies from Mankind."
"These encouraging Q2 results offer a tangible glimpse into the continuously improving operations at GABY, both for our shareholders and potential acquisition targets", said Marshall Minor, CFO of GABY. "We look forward to bringing new retail brands into the fold and continuing to evaluate and upgrade our internal operations as we head into another chapter of growth."