Auxly Cannabis Group Inc. (OTCQX:CBWTF) (TSX:XLY) released its financial results for the three and six months ended June 30, 2022, revealing net revenues of $27.3 million, an improvement of 31% compared to $20.9 million during the same period in 2021.
Q2 2022 Financial Highlights
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Gross profit of $9.8 million, compared to $8.0 million during the same period in 2021.
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Net losses attributable to shareholders of the company were $14.3 million, representing a net loss of $0.02 per share on a basic and diluted basis.
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Adjusted EBITDA during the three months ended June 30, 2022 was negative $4.0 million, a decrease from the same period of 2021, however, improved by approximately $2.0 million over the most recent quarters.
Hugo Alves, CEO of Auxly, stated: "We continued to make meaningful progress towards our strategic objectives during Q2. With an increasingly competitive market, we have been able to maintain our position as the #1 LP in cannabis 2.0 sales, driven by our leadership position in the vapor category where we ended the first half of the year as the #1 LP in the category with over 17% share of market. We successfully increased revenues and gross profits during the quarter while maintaining our SG&A spending largely flat. We have also strengthened our balance through the sale of non-core assets for total proceeds of $10.1 million to date, which will support our continued growth. We remained focused on our consumers and their evolving needs and preferences by launching 27 new SKUs during the first half of the year and will continue to prioritize investments in innovations in key growth categories. Finally, as we enter the second half of 2022, we will continue to focus on cost control and margin enhancement through continue process improvements and investments in automation to further support our key objective of Adjusted EBITDA profitability in 2022."
Discontinued Operations
On May 27, 2021, the company announced that it had reached an agreement to sell KGK to Myconic Capital Corp. (now Wellbeing Digital Sciences Inc.), and on June 2, 2021, completed the sale of KGK to Wellbeing.
Photo by Diyahna Lewis on Unsplash
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