The Good Shroom Co (TSXV: MUSH) has had substantial revenue growth since last year, which it says can be attributed to its functional mushroom drinks and cannabis sales.
On Wednesday, the company announced that it had recorded approximately $1.5 million in sales revenue, which represents more than 6X growth from 242,000 in 2021. This was the first fully-operational year for the company’s cannabis division, beginning sales on December 25 last year.
Gross profit margins for the company were approximately $229,000 and the company says non-cannabis products accounted for more earnings than pot merchandise.
Good Shroom says it has no debts aside from a $40,000 sum owed to the government of Canada next month. It also says the proportion of its Teonan mushroom beverage sales to total sales is anticipated to be greater in 2023 than it was this year.
The company had an operating cash loss of approximately $778,000 for the fiscal year ending in July and says a substantial amount of those losses is linked to capital investment incurred while setting up its distribution network for mushroom drinks in the United States. Those beverages can now be purchased through two of the largest grocery distributors in America, United Natural Foods and KEHE.
The operational losses can also be attributed to labour fees incurred when the company completed an operational restructuring in June and July this year, reducing its labour costs by 34 per cent going forward. Good Shroom says this restructuring will not impede its growth.
“With the current sales revenue we are a small company but our foundation is set and the potential to scale profitably is attainable in the medium term,” said Eric Ronsse, CEO of the company.
“Our financial discipline is being tested and I expect the results to cement The Good Shroom Co as a force in our industries. Fiscal year 2023 quarterly results should begin reflecting the type of company we have the potential to become.”