Vibe Growth Corporation (OTCQX:VIBEF) (CSE:VIBE) Q2 2022 revenues were $5.73 million, a 26% decrease compared to $7.79 million in Q2 2021, and 1.1% increase compared to $5.67 in the Q1 2022.
Q2 2022 Highlights
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Dispensary gross margin increased to 48.2%, compared to 33.5% in the comparative 2021 quarter;
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Generated positive EBITDA and adjusted EBITDA of $366,551 and $428,041 compared to an EBITDA loss and adjusted EBITDA loss of $285,405 and $25,506 in the first quarter of 2021;
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E-commerce orders accounted for 18.8% of transactions in the second quarter of 2022;
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As of June 30, 2022, the cash position was $7.35 million with no significant debt.
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Net loss was $654,511 compared to $100,825 in Q2 2021.
Vibe Retail Expansion Strategy
Vibe has continued to expand its retail cannabis dispensary portfolio across California, with the newest store addition located in Salinas, CA, opening its doors to the public on July 15, 2022. The Salinas dispensary joins the company's existing California locations in Sacramento, Stockton, Redding, Palm Springs, Ukiah, plus Portland, Oregon.
Cultivation Expansion in Monterey County
Vibe's Monterey greenhouse buildout will serve as the company's flagship cultivation facility in California, with phase 1 construction of approximately 70,000 square feet now underway. Greenhouse building materials sourced and ordered in late 2021 have been delivered and received. The Monterey greenhouses will utilize low iron glass ("Dutch Glass"), allowing full-spectrum ultraviolet light transmittance. Vibe believes it will be one of the lowest cost cultivators in the region.
"During the first half of 2022, the Vibe team was focused on opening the Ukiah dispensary in March, preparing for the opening of the Salinas dispensary in July, accelerating the brand marketing of Hype, and bringing the Sacramento cultivation expansion online," stated Vibe CEO, Mark Waldron. "Vibe has implemented numerous marketing and sales initiatives along with operational improvements and expense streamlining that allowed the company to return to a positive EBITDA quarter, successfully navigating some of the economic headwinds facing some California cannabis operators."
Rebranded Hype Product Line
The company successfully rolled out the rebranded and expanded Hype Product line with new designs and packaging. "Rebranding Hype Cannabis Co. has been an extraordinary effort by our passionate team members," stated Mary Ellen Schrock, the company's brand evangelist. "The striking new aesthetic is based on four pillars - our heritage, premium products, people, and trust. The transformative branding is deeply influenced by our passionate team that works hard to earn consumers' trust by producing the highest quality products available in the market today."
Vibe Launches California Cannabis Lifestyle Clothing Line
In addition to Vibe's expanded marketing initiatives, the company has also launched its custom clothing line, a collection designed in collaboration with the famed Los Angeles, California-based designer Mary Ellen Schrock. The new private label collection introduces a complete line of ready-to-wear pieces at an accessible price point. Vibe clothing products are now available online on the company’s website and the company's retail locations. Additional products will be introduced in a fall collection later this year.
The initial product line features sweatshirts, hoodies, t-shirts, hats, leggings, and much more, with beachwear dropping later this summer. A portion of all sales will fund Community Vibes initiatives.
Photo: Courtesy of Hype Cannabis Co.
