Auxly Cannabis Group Inc. (TSX:XLY) (OTCQX:CBWTF) released on Monday its financial results for the three and nine months that ended Sept. 30, 2022.
The Toronto-based company reported a 19% year-over-year drop in total net revenues to CA$19.8 million ($14.9 million) in the third quarter, which was transitional for Auxly, CEO Hugo Alves, said.
"We took insights from and listened to our consumers to understand their evolving needs and preferences so that we could begin to deliver on quality improvements across our vape, dried flower and pre-roll portfolio while also implementing pricing reductions," Alves continued. "These necessary adjustments, along with disruptions at some of our wholesale customers and hurricane Fiona's temporary impact on our Auxly Charlottetown facility, led to lower than expected revenue for the quarter."
Q3 2022 Financial Highlights
- Net loss amounted to $CA60.1 million, compared to CA13.53 million in the prior year's period.
- G&A declined approximately 11% from the previous quarter as the company focused on reducing costs.
- Total expenses amounted to CA$21.06 million, up from CA$17.8 million in the same quarter last year.
- Adjusted EBITDA came in negative at CA$5.8 million, representing an improvement of CA$0.3 million as compared to the same period of 2021.
- As of Sept. 30, the company had CA$16.01 million in cash and equivalents, CA$345.06 million in total assets, and CA$173.68 in debt.
Nine-Months Ended Sept. 30, 2022
- Total net revenue was CA$69.8 million, representing an increase of 28% year-over-year.
- Net loss amounted to $CA 114.24 million, compared to CA15.36 million in the prior year's period.
- Total expenses amounted to CA$68.67 million, up from CA$52.98 million in the same quarter last year.
- Adjusted EBITDA came in negative at CA$16.09 million, compared to a CA$15.63 million loss in the same period of 2021.
"We expect to see the benefits of our portfolio and pricing adjustments along with increased traction from our 30+ new SKUs that have launched, or will be launching, in Q4 2022," Alves said.
Price Action
Auxly's shares traded 8.36% lower at $0.028 per share at the market close on Friday.
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