Fire & Flower Holdings Corp. (TSX: FAF) its financial results for the second fiscal quarter ending August 3, 2019, with total revenue of $11.1 million versus $9.5 million for the same time period in 2018. The net loss for the quarter was $6.4 million versus last year’s net loss of $4.2 million for the same quarter. The net loss per share remained flat at ($0.06).
“Fire & Flower‘s financial and operational results for the quarter demonstrate that the company is continuing to build the infrastructure required to support the rapid growth of our retail network and deliver on our objectives,” shared Trevor Fencott, Fire & Flower’s, Chief Executive Officer. “Our strategic partnership with Alimentation Couche-Tard is transformative for the Company and the Hifyre digital retail platform continues to showcase Fire & Flower as a leading data-driven, ‘retail 2.0’ company.”
Breaking Down The Revenue
$9.7 million of $11.1 million in revenue was cannabis-related accessory sales with wholesale sales accounting for $0.9 million and digital development revenue of $0.5 million. During the first quarter, cannabis-related accessory sales were $7.7 million, wholesale sales of $1.3 million and digital development revenue of $0.5 million. The company said that revenues were expected to continue to increase as it acquires new licenses, opens additional retail cannabis stores, and continues to commercialize the HifyreT digital retail and analytics platform.
Here Come The Convenience Stores
In August, Fire & Flower closed a strategic investment by Alimentation Couche-Tard, a company known for its convenience stores like Circle K. The company noted in its statement that this transaction allows for Couche-Tard to obtain a controlling interest and provides more than $380 million of growth capital for global expansion. It provides significant, new possible commercialization and innovation leadership opportunities for Fire & Flower’s proprietary Hifyre digital platform and access to Couche-Tard’s leadership team.
The Hifyre platform provides real-time reporting and analysis to the Company’s marketing, retail experience, and merchandising teams and is supplied to Licensed Producers to assist in demand forecasting, product development and sales reporting. This platform is integral to Fire & Flower operating as a data-driven “retail 2.0” company.