TORONTO, Nov. 14, 2022 /CNW/ – Trees Corporation (NEO: TREE) (the “Company” or “Trees“), is pleased to announce its third-quarter financial results for the three and nine month periods ended September 30, 2022and 2021.
HIGHLIGHTS OF THE THIRD QUARTER OF 2022 (the “QUARTER”)
- Record Sales and System-wide sales(1) of $2.5 million and $3.7 million respectively, for the Quarter;
- 40% growth in same-store corporate sales(1)from the third quarter of 2021;
- Gross margin of $1.0 millionor 36% of sales, a 71% increase from the third quarter of 2021 and a 27% increase from the second quarter of 2022;
- 13 Trees Cannabis branded stores currently operating at the date of this release, with a 14th store (Etobicoke, Ontario) scheduled to open before year end; and
- Receipt of BC retail license approval, allowing for imminent closure of BC 5-store acquisition.
The Company has increased revenues in the Quarter by 60% from the first quarter of 2022, while total gross profit has increased by 78% over the same period due to a strengthening retail gross profit margin percentage which averaged 32% in the Quarter compared to 28 % in the first quarter of 2022.
“I am very proud of our team and their exceptional work in delivering continued strong growth in sales and profitability over the past 9 months”, said Campbell Becher, CEO of Trees. Mr. Becher added “With the imminent acquisition of our 5 Trees brand licensed store in BC, anticipated to close before year end, our quarterly revenue and gross profit margin will jump by nearly 50% beginning in the first full quarter after the closing.”
Surging sales growth in 2022 is largely attributed to same-store sales growth of 40% over the third quarter in 2021. Jeff Holmgren, President and CFO said, “our strong same-store sales growth demonstrates the ever-increasing depth of our relationships within existing communities in which we serve. With a continued hyper-focus on the consumer experience, despite intense competition in Canadian retail cannabis markets, Trees is proving its operational excellence while forging a near-term path towards corporate profitability and long term sustainable growth, one customer at a time.”
Selected Financial Information
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Three Months Ended September 30, |
Nine Months Ended September 30, |
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|
2022 |
2021 |
Change |
Change |
2022 |
2021 |
Change |
Change |
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|
$ |
$ |
$ |
% |
$ |
$ |
$ |
% |
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|
Revenue from retail sales |
2,490,597 |
1,418,394 |
1,072,203 |
76% |
6,141,792 |
2,749,308 |
3,392,484 |
123% |
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|
Revenue from wholesale accessory sales |
43,824 |
29,858 |
13,966 |
47% |
104,775 |
52,090 |
52,685 |
101% |
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|
Revenue from consulting |
– |
6,530 |
6,530 |
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