Auxly Sees 732% Growth in Total Revenue

Auxly Cannabis Group Inc., (TSX.V – XLY) (OTCQX: CBWTF), leading consumer packaged goods company in the cannabis space, released their financial results for the three and nine months that ended on September 30th. Except for common shares, all figures mentioned will be in Canadian dollars. 

Net Revenue + Gross Profit

The company reported a total net revenue of $13.4 million for the three months that ended on September 30th. Before excise taxes and research contacts, this figure is $15.2 million. Their reported net revenue represents an 85% increase from the previous quarter, and a 732% increase from the same period last year. Last year’s total revenue clocked out at roughly $1.6 million, representing an approximately $11 million dollar difference. 

Auxly categorizes all of their revenue as stemming from the sales of cannabis products, which is their primary responsibility as a business. In addition to producing cannabis CPGs, they have experts in product development and clinical/scientific research to produce these products. The company’s cannabis brands include Dosecann, Kolab Project, Robinsons, and Foray. 

The company reported a gross profit of $3.8 million. 

Net Loss

Auxly experienced a slightly bigger net loss than the same period last year, reporting a net loss of approximately $17.80 million. Last year’s losses capped out at roughly $17.26, so about a 3% change. 

Cash, Assets, and Debt

Auxly reported $13.57 million in cash and cash equivalents for the three month period leading up to September 30th. This is 69% less than what was reported as of December 31st, 2019. Last year’s cash equivalents totaled $44.13 million. Auxly’s currently claims $381,598 in total assets and $112,358 in debt. 

Expenses

Auxly reported a decrease in selling, general, and administrative expenses – dropping down to approximately $11.36 million from roughly $16.59 million during the same time last year. Also, depreciation and amortization totaled $2.3 million. 

Cost of Sales

Auxly sold $9.5 million worth of finished cannabis products during this three month period, with the nine month period totaling $19.66 million. 

Adjusted EBITDA

Auxly reported an adjusted EBITDA of $6.8 million, decreasing 39% from the same period last year. The nine months ending on September 30th, 2020 saw an adjusted EBITDA of roughly $24.2 million, down 10% from the same nine month period in 2019. 

“Our team entered Q3 committed to driving sales growth, reducing costs and improving product availability. Our efforts resulted in a quarter over quarter increase in net revenues of approximately $5 million and a reduction in SG&A of approximately $2 million. Our improved performance was driven primarily by continued improvements in operational and supply chain capabilities, expanding distribution, better alignment of our resources with our commercial objectives and, of course, our continued focus on understanding our consumers and delivering cannabis products that delight them. We believe that our efforts are resonating with consumers and that Auxly has quickly established itself as one of the leading cannabis companies in Canada,” said Hugo Alves, CEO of Auxly. 

Kaitlin Domangue

Kaitlin DomangueKaitlin Domangue

Kaitlin is a 23-year-old wife and mom to three children. She is a financial reporter for the Green Market Report and a freelance writer for other businesses in the cannabis space.


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