Heritage Cannabis Holdings Corp. (CSE: CANN) (OTCQX: HERTF) reported its financial results for the third quarter ended July 31, 2022. Heritage delivered revenue of $10 million, an increase of 111% over last year’s $5.1 million. Heritage said the growth was attributed to a continued increase in its vape and concentrate offerings as well as the launch of the flower vertical.
The company also reported a net loss of $2.7 million, which was an improvement over last year’s loss of $6.6 million for the same time period. Heritage said the losses were trimmed due to the gross margin gains and the cost management in general and administrative expenses combined with a $416,000 unrealized decrease in loss on contingent payables.
The increase over the prior year was also due to an increasing our provincial listings and the continued advancement of the company’s inclusion on third party medical platforms. However, Heritage also noted that the positive impact was partially offset in the quarter due to The British Columbia General Employees’ Union (BCGEU) labor strike given sales to the province were 39% lower than the average of the previous two quarters.
“What we have accomplished in the third quarter is a tremendous achievement by the entire team at Heritage. Given the sector headwinds and after normalizing for isolated events in the quarter, we are proud to state that we have marked our second consecutive quarter of positive EBITDA. It is also our sixth consecutive quarter of increasing revenue which has been driven by the team focusing on growing revenue through the addition of sales channels and the further expansion of our already successful portfolio of products,” said David Schwede, CEO of Heritage. “Our platform approach has protected us from significant challenges across the industry and we will continue to execute on our business strategy, focusing on cost management and driving revenue which was up over 165% from the same time a year ago. Our team is driven to innovate and propel growth, and the delivery of positive financials this past quarter represents an important milestone for the Company and what is ahead for us. Through multiple new brand and product launches on the near-term horizon, as well as the imminent launch of product sales in the U.S. contributing to revenue, Heritage is on a clear path for success.”
Heritage is known for its portfolio of high-quality cannabis products under the brands Purefarma, Pura Vida, RAD, Premium 5, feelgood., the CB4 suite of medical products in Canada and ArthroCBD in the U.S.