TORONTO, May 16, 2022 /CNW/ -
Auxly Cannabis Group Inc. (TSX: XLY) (OTCQX: CBWTF) ("Auxly" or the "Company") today released its financial results for the three months ended March 31, 2022. These filings and additional information regarding Auxly are available for review on SEDAR at www.sedar.com.
Q1 2022 Highlights
-- 147% increase in net sales compared to Q1 in 2021 - recorded net revenues of $22.6M for the three months ended March 31, 2022; -- SG&A of $12.8M in Q1 2022 decreased slightly quarter-over-quarter with the full quarter consolidation of Auxly Leamington; -- Adjusted EBITDA improved year-over-year by approximately 14%; -- Continue to hold the #1 LP position in Cannabis 2.0 sales nationally; -- Back Forty remains the #1 vape brand in the country and became the #4 flower brand nationally in the quarter; -- Maintained its position as one of the top 5 LPs in Canada in total cannabis sales with 6.9% market share; -- With growing competition in vapes, the largest 2.0 product category, Auxly continued to hold the #1 LP position in national sales with 20% market share; -- Successfully launched 10 new SKUs into the market in the quarter, including solventless live rosin vapes, new infused pre-roll strains and the first-to-market Live Rosin Chew all under Kolab Project brand; -- Recorded non-cash impairment of approximately $25.7M related to the closure of Auxly Annapolis and Auxly Annapolis OG cultivation facilities.
Q1 Highlights
March 31, Percentage (000's) March 31, 2022 2021 Change Change Total net revenues 22,626 9,166 13,460 147% Net income/(loss)* (39,846) (10,494) (29,352) -280% Net income/(loss) from continuing operations* (39,846) (10,316) (29,530) -286% Adjusted EBITDA** (5,622) (6,540) 918 14% Weighted average shares outstanding 847,603,874 714,041,130 133,562,744 19% December 31, Percentage (000's) March 31, 2022 2021 Change Change Cash and equivalents $ 16,295 $ 14,754 $ 1,541 10% Total assets $ 417,460 $ 450,422 $ (32,962) -7% Debt*** $ 175,577 $ 168,809 $ 6,768 4% *Attributable to shareholders of the Company ** Adjusted EBITDA is a Non-IFRS financial measure. Refer to the Non-GAAP Measures section in the MD&A for definitions ***Debt is a supplementary financial measure. Refer to the Non-GAAP Measures section in the MD&A for definitions
Hugo Alves, CEO of Auxly, commented: "Amid intense and growing competition and seasonal buying trends in the Canadian cannabis market, Auxly continued to see strength in sales, increasing revenues 147% year-over-year. Though this quarter presented some ongoing supply chain and operational challenges preventing us from meeting consumer demands for our branded cannabis products, we believe we have taken the necessary steps to correct these issues for the coming quarters, allowing us to increase fill rates and continue with our exciting new product launches throughout the year. We continue to lead the market in cannabis 2.0 products and remain focused on building to leadership in dried flower and pre-rolls and improving our business to achieve our goal of reaching adjusted EBITDA profitability."