Post by
Skyman on May 30, 2019 8:50pm
Operating Results for the First Store
The March 30 Financials have been posted.
The first store in Warman did $73,000 sales in the first month and a bit. That's roughly $876,000 annual, which is in line with the benchmark in established legal markets in USA at 1M per store. If you don't grow your own (yet), the cost of goods sold is roughly two thirds, which brings gross profit down to $333,000 on average. Westleaf now has three stores going, so that equals about $1M cash per year. During this early growth stage, corporate "selling and administrative" is eating up about $12M per year, so Westleaf will need 36 operating stores to turn a steady profit year after year. They have about fifty stores awaiting license and approvals. If they can build this brand and execute, they will do okay in this retail space. Any money from cultivation and extraction will be a bonus, but not likely for this fiscal year.
Comment by
sotypical on May 31, 2019 2:37pm
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Comment by
PabloCamilo on Jun 01, 2019 11:10am
Thanks for the analysis. Any indication whether the Warman sales are inclusive of their online sales? They ship their online orders to SK / AB from that Warman location.
Comment by
Skyman on Jun 05, 2019 10:13am
I stand corrected on my last post. According to the NR, the new extraction facility will be finished this month, and Westleaf will have plenty of time to manufacture edibles for the October legalization date. I like that they are providing extraction work for third parties, so the facility will begin producing cash flow right away. This could have a big impact on the income stream this year.
Comment by
sotypical on Jun 08, 2019 12:18pm
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Comment by
sotypical on Jun 08, 2019 12:30pm
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