Fire & Flower Holdings Corp. (TSX: FAF) (OTCQX: FFLWD) announced its financial results for the fiscal year and the fourth quarter ended January 29, 2022. In the fourth quarter, Fire & Flower reported that revenue dropped slightly by 1% from the previous year to $42.7 million. Fire & Flower said that retail revenue for the fourth quarter, decreased 5% to $31.7 million from $33.2 million in the prior year’s comparative period. Revenue decreased by $2.0 million or 6% sequentially from the third fiscal quarter of 2021.
The company said that the quarter-over-quarter revenue decrease was primarily due to increasing competition from new licenses issued and pricing pressures in the retail market. The net loss for the quarter was $19.4 million versus last year’s $11.4 million for the same time period.
Full Year Results
For the full fiscal year, revenue rose 37% to $175.5 million versus the 2020s $128.1 million. The company said that retail revenue for the 2021 fiscal year increased 29% to $130.8 million from $101.5 million in the fiscal year 2020. Wholesale distribution revenue for the 2021 fiscal year increased 49% to $30.3 million compared to $20.3 million in 2020 fiscal. year. The net loss for the year fell slightly to $63 million from the previous year’s net loss of $78 million.
“Fiscal 2021 has been a year of significant advancement and growth for Fire & Flower and we have delivered meaningful year-over-year revenue growth. The Hifyre Digital Platform has exhibited impressive 129% annual and 7% quarterly sequential growth and is the core value proposition of our business. This year, we have refined our vision to, ‘Deliver Cannabis to the World’ positioning our business as a consumer e-commerce platform, supported by a distributed retail network enhanced by our Circle K store co-location program. This position is enabled through the acquisition of Pineapple Express Delivery, one of the largest cannabis delivery platforms in the world,” shared Trevor Fencott, Chief Executive Officer of Fire & Flower.
“In the fourth quarter of fiscal 2021, while we have continued to see growth in our Hifyre digital business segment, we saw a decline in our retail revenue due to increased competitive pressures within the Canadian cannabis retail landscape. We announced a further competitive price and product strategy aimed at continuing to build an expanded consumer base. As we look out to fiscal 2022, we anticipate continued growth in our digital business and driving further revenue opportunities in the U.S. We look forward to greater continued alignment with our partners at Alimentation Couche-Tard through the retail store co-location program which will be important in delivering a clear, convenience-oriented value proposition to our customers in brick-and-mortar retail and e-commerce.”
Fire & Flower remains focused on the long picture. The company completed one of the last remaining steps in its NASDAQ listing by obtaining DTC Eligibility for the common shares on April 13, 2022. It has expanded logistics and delivery services through a cross-docking Distribution Agreement with Manitoba Liquor & Lotteries on April 14, 2022.
With regards to the sales issues, the company announced a highly competitive product and pricing strategy to drive an expanded customer base on April 21, 2022.