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Saturday, Aug 13, 2022
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.

Business

Entourage increases fiscal year revenue 42% to $42.2M

Adjusted EBITDA went to a negative $9.3 million from a positive $7.7 million in the last year

entourage reports earnings
Photo via Entourage Health

Entourage Health Corp. (TSX-V:ENTG) (OTCQX:ETRGF) (FSE:4WE) increased its revenue this year thanks to its Color Cannabis brand, recognized as a top 10 performer for the year.

On Monday, the company announced its financial statements for its fiscal year ended Dec. 31, 2021 and saw a 42 per cent year-over-year increase in net revenue to $42.2 million from $29.4 million in the previous year.

Loss and comprehensive loss for the year went down 12 per cent to $78.9 million from $89.6 million in the last year. Adjusted earnings before interest, taxes, and depreciation (EBITDA) improved by $1.8 million to negative $39.8 million for 2021 from $41.6 million last year.

This was primarily driven by business transformation initiatives to lower costs and partly due to generating higher-margin revenue and spending lower selling, general and administrative expenses.

Cash and cash equivalents slightly decreased by 4 per cent to $21.4 million in 2021 from $22.3 million in the previous one.

Company stock stayed at $0.075 on the Canadian Venture Exchange on Monday.

Graph via Entourage

Read more: Entourage and Pineapple Express to offer same-day medical pot delivery

Read more: Cannabis Amnesty partners with pot companies to help communities affected by prohibition

“Strong consumer sales in our main product categories included notable increases in premium flower & pre-roll market segments, with a 535 per cent sales increase over the prior year,” CEO George Scorsis said.

Scorsis says this was a breakout year for the company’s medical business with 20 per cent patient growth and expanded product portfolio of over 40 products.

“Based on our strong early-year momentum, we expect these favourable trends will continue through 2022 even as we realize the benefits of expanding our tissue culture business with the acquisition of CannTx Life Sciences,” he added.

Preliminary results for the first quarter of 2022 show a record total revenues of $17.4 million, reflecting continued increased sales of products. Revenue from adult-use and medical channels increased substantially quarter-over-quarter, driven by expanded product availability across retail outlets, broader distribution channels and customer acquisition initiatives.

Last week, leading cannabis operators Fire & Flower Holdings Corp.  (TSX: FAF) (OTCQX: FFLWF) and Entourage announced they signed an agreement where Fire & Flower subsidiary Pineapple Express Delivery Inc. will offer same-day delivery services for Entourage patients in certain regions in Ontario.

 

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