Canadian retailer Kiaro Holdings Corp. (TSXV: KO) (OTC: KIARF) has grown its revenue three straight quarter in a row after its Hemisphere acquisition and Saskatchewan wholesale expansion.
On Tuesday, the Vancouver-based firm announced its first-quarter financial results ended April 30 and reported revenue growth of 77 per cent to $9.2 million from $5.2 million in the previous year.
The company also saw retail revenue growth of 41 per cent to $5.4 million from $3.8 million in Q1 last year. It reported wholesale revenue growth of 78 per cent to $3.3 million which is 36 per cent of the total revenue from $1.9 million in the previous year.
Kiaro announced its total assets as of April 30 were $19.9 million and its eCommerce revenue growth went up 26 per cent to the last quarter.
This is the second quarter that has included the full financial performance of Kiaro’s more recent acquisition Hemisphere and its National Cannabis Distribution (NCD) focused the on Saskatchewan wholesale market.
“The combined operations have proven to deliver record revenue growth, improve margins, and push us closer to our critical milestone of achieving positive EBITDA,” Interim CEO Eleanor Lynch said.
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The company says its revenue growth of 78 per cent to $3.3 million was an outstanding result and contributed over 36 per cent of the revenue volume. Kiaro says its ability to attract top talent to lead business channels has proven to be foundational in driving asset performance.
The company said its eCommerce business is fast-growing and contributed revenue of $752,000 to the quarter as compared to $596,000 in Q4 of FY2022.
“Revenue growth was underpinned by volume from the acquired Hemisphere retail stores and the strong revenue results from NCD, our wholesale business”, Lynch said.
“I would like to thank the Kiaro team who meet challenges with enthusiasm and creativity and who continue to deliver at the highest standards. Particularly well managed by the team have been retail gross margins, which have remained steady at 37 per cent while the Wholesale segment is at 10 per cent,” she added.
According to Kiaro, gross margins are among the “healthiest” of the top publicly traded Canadian cannabis retailers based on recent filings.
Company stock dipped by 20 per cent today to $0.2 on the Canadian Ventures Exchange.
