Toweringmars wrote: Oh heavens, you we're right about the CBD. Well... That changes everything.
Forget everything else in the post. Lol and posting less... From you? Thats funny.
I hear ya IMB, dont blame you for ignoring him, I can see most users have done the same condiering he gets next to no reads on any of his groundbreaking copy and paste discoveries.
Maybe he'd have more likes at the same time if he wasnt such a window licker. I mean, lets face it, the guys going to go far someday, and when he does lets hope he stays there. Lolol guys a grey sprinkle on a rainbow cupcake. Frankly, I dont know what his problem is, but I bet its hard to pronounce.
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My post was meant to challenge the previous post that bulk was becoming less of total sales as a pattern when q4s bulk will be the main revenue growth QoQ. Is that not the case and longer?" No, where have you been the last year? We're moving away from the primary bulk model. As seen in the 2000% gain YoY in adult use.
Go back and re-read my post for the fifth time and realize that while bulk sales will be the icing on the cake, the outdoor is allowing them to break away from feeding greenhouse into some of these lower margin products and re-allocating the right product for the right place.
QoQ the inventory was 32,022 and is now 33,868, a difference of 1,846. If they we're carrying the charge of 2.4m in inventory then that difference would be 4246 less whatever they we're able to get from the sale. Lets even say 50% (which its likely less) then 3046. Their biological assets from the previous Q we're 8,566 and now rose to 10,268, a difference of 1702. 3046 + 1702 = 4748. Seems about right considering we probably gave them more than what they recorded the sale of the aged CBD at.
And regarding your 'positivity", you even put a spin on that with the whole "That is if they arent going to write it down".
Its almost like its your job to stop people from discussing anything company related without trying to make it negative. You're so quick to assume people are paid shills, and that what you do is somehow entierly different. But take it from a Legend pal, people get tired of the chicken little act. Maybe try being a human for once and realize that people put their hard earned money into this thing and while being well aware of the risks associated, dont want to read some ape copy and paste the same loss statement over and over. If you're going to be a turd, go lay down in the yard with the rest of them.
KeyserShoze wrote: The Legend continues
It's like you are paid to find the slight glimmer of hope in every post. Try reading more and posting less and you will find the information required to have an accurate constructive conversation.
Page 11 of the Q3 md&a states under
OPERATING EXPESNSES
"The net negative gross margin is attributable to the company recording an inventory reserve of $2.4 million, and the opportunistic sale of aged CBD distillate, which is no longer required due to greater focus on THC dominant vape SKUs."
It states CBD right there. No hunch required.
My post was meant to challenge the previous post that bulk was becoming less of total sales as a pattern when q4s bulk will be the main revenue growth QoQ. Is that not the case and longer?
As per the 5100 less kgs sold in q3. Why is that? If its true as you've claimed that they're concentrating on rec rather than bulk, why did their inventory value not increase accordingly if they're warehousing 5100 kgs of indoor dried flower? Show us where the increase in assets is for that inventory. Also, why did they not export any flower to Germany for much needed cash but instead dumped CBD distillate at a loss for sales? Your post did not address the question.
Furthermore, I mentioned their cost of goods sold is between $10 and $12 million. Therfore anything above that would be profitable if not for any unsuspected writedowns. The fact that you found that as a negative suggests you see everything I post through your confirmation biased eco chamber lense. Stick to to facts. Positive or not.
I am a howl at parties.
Toweringmars wrote: Its like you just cant help but be
negative.
The Distilate was aged. No clue if it was THC or CBD it was just a hunch. If its aged then its beyond its shelf life I would imagine which is probably over a year old. But again, just a hunch.
They addressed the decline in medical sales in the conference call. And sure it sounds like an excuse, if you go back and check the quarterlies it checks out. Q3 is seasonally a slow quarter for medical sales. That coupled with the fact that health Canada was extending scripts caused a major issue for any customer looking to migrate to a new LP. Medical sales were down 23% QoQ but up 31% YoY, so frankly they're still scaling that side. Meanwhile adult use is up 57% QoQ and 2044% YoY. The company is proving it can grow its operations. Now the gross margins we're down 19% in the adult use side (still up 8% YoY), which I spoke to in my last post. Pre-rolls have less margin than other 2.0 products and the company made a real push into that segment as the brand picked up traction. Using outdoor instead of greenhouse for the input material there will draaaaaaaastically change the margins on those.
Medical margins were up 6% QoQ and 21% YoY, so they're honing in those sales regardless of the seasonal downturn.
So to your "They sold 5100 kg less than last quarter" Yes, that is a good thing. They arent dumping bulk onto the market and did relatively the same revenue selling 65% less product.
So yes, the average sales per gram for medical decreased.... BUT THE MARGINS INCREASED.
It depends what mix of product is selling.
You must be a real gem at parties.
KeyserShoze wrote: They sold 5100 kg less than last quarter. That isn't a good thing. Recreational sales increased while medical and bulk decreased. The average sale price per gram for medical decreased as well. Kind of wierd. Isn't Unifor supposed to increase medical sales? Bulk sales price per gram is also deceiving. The $1.26 price per gram was high due to old inventory of cbd distillate that they got rid of at a loss. Another wierd sale since CBD has been touted by bullish posters as a potential future revenue growth. Why was it sold at a loss if their is such demand in this category. A little bit of desperation maybe? Without that sale q3 would have been worse. It seems their overall costs are somewhere between $10 to $12 million per quarter. That is if they aren't writing down anything. But your post is kind of ironic since this upcoming q4s biggest revenue driver will be outdoor bulk sales.
IMB wrote:
finally something to read. Did you ever look at the ratio of kgs sold between their catagories? The wholesale has dropped every Q. this year, so with the right mix they don't have sell as many kgs to make a profit. This Q, in the past, has always been their biggest and they are saying that there is on going orders to Germany. So time will tell if they have gotten the mix right.