Canadian cannabis retailer ShinyBud Corp. (CVE: SNYB) saw revenue nearly double last year, resulting from an expanded retail network that included a mix of new stores and recent acquisitions.
On Tuesday, the company reported its financial results for the 12 months ended January 31, ending the fiscal year with $20.6 million in revenue, a 95 per cent increase compared to $10.6 million during the previous year.
Gross profit increased by 91 per cent to $7.6 million compared to $4 million, primarily driven by ShinyBud’s expanded store network.
The company expanded its store portfolio from six to 28 corporate stores by the end of January, opening 11 new stores and acquiring 12 as part of the acquisition of 11181297 Canada Inc. and business combination with Mihi Inc. that was completed in January.
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“2022 was a momentous year for ShinyBud. We successfully completed a complex business combination and effectively integrated all entities to form ShinyBud Corp.,” ShinyBud CEO Kevin Reed said in a statement.
“Concurrent with our transition to a public entity, last year we delivered meaningful growth and strengthened our brand as we continued to roll out our corporate store network, expanding primarily into underserviced markets.”
Total general and administrative expenses surged to $9.2 million, a 315 per cent increase from $2.2 million due to retail expansion and acquisition costs.
Gross margin dipped to 34 per cent compared to 38 per cent, while adjusted EBITDA increased by 21 per cent to $2.5 million from $2.1 million during the previous year.
The company had a comprehensive net loss of $5.7 million, with income of $1.4 million from store level operations and a loss of $7.1 million from corporate activities including startup costs, listing on the Canadian Venture Exchange, and fees.
Earlier this month, ShinyBud announced it signed a binding letter of intent to acquire Cotton Mill Pharmacy for a total purchase price of $900,000. Cotton Mill has been operating since 2015 and is a fully independent no banner pharmacy located in Cornwall, Ontario.
To finance the acquisition, ShinyBud received a term sheet for a $700,000 million secure acquisition 10-year term loan from Caisse Desjardins Ontario Credit Union Inc. at an interest rate of 5.5 per cent.
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“In response to consumer data and industry trends, we also recently announced the expansion of our retail strategy to focus on health and wellness by introducing a new retail line of business through community pharmacies,” Reed said.
“As we continue focusing on driving profitably through our retail cannabis business, we are evaluating community pharmacy opportunities and setting our sights on an exciting year ahead.”
Company stock was unchanged Tuesday, trading at $2.40 on the Canadian Venture Exchange.