Fire & Flower Holdings Corp. (TSX: FAF) (OTCQX: FFLWD) announced its financial results for the fiscal third-quarter ending October 30, 2021, with revenue rising 37% to $45.4 million versus $33.1 million for the third quarter of 2020. The net loss reported was $1.9 million. One cautionary note was that Fire & Flower reported that same-store sales decreased 27% for fifty-four (54) stores in operation during the quarter due to increased competition as the surge in newly licensed retail cannabis stores continues across Canada. The company noted that in Ontario, 228 new stores were opened in the period. Fire & Flower also reported a decrease in same-store sales last quarter.
Trevor Fencott, Chief Executive Officer of Fire & Flower commented, “Our progress in the third quarter was not only demonstrated by our continued strong financial performance, but by the many growth opportunities that we successfully advanced in order to solidify our high-margin, asset-light cannabis retail business model. We completed the acquisitions of PotGuide and Wikileaf, the industry’s leading online cannabis platforms, setting the stage for the role out of our expanded e-commerce digtal platform strategy. In addition, we expanded our Circle K co-location program to create additional strategically-located, asset-light stores to complement our existing retail network. Finally, last week, we announced our acquisition of Pineapple Express Delivery, the cannabis industry’s leading logistics provider for the delivery of legal cannabis.”
It was the sixth consecutive quarter of positive Adjusted EBITDA of $2.1 million compared to positive Adjusted EBITDA of $2.0 million for the third quarter of 2020. Fire & Flower currently has 102 stores. The company said its total principal amount of debt outstanding on October 30, 2021, was $2.4 million and it had cash and cash equivalents balances of $16.5 million. The company also recently announced a $30 million Secured Debt Facility with strategic partner Alimentation Couche-Tard.
“With these accomplishments, we are rapidly transforming into a cannabis consumer technology platform which allows us to deliver a seamless customer experience from online customer acquisition through to fulfillment via same-day delivery to customers at our 100+ stores across North America,” concluded Fencott.