Tuesday , June 28 2022

Cannabis NB lost almost $ 12 million in the first fiscal year, according to data


Cannabis PS lost $ 11.7 million during its first fiscal year, which retail-owned crown of legal marijuana and recreational products is mainly blamed on "supply challenges", not its market prices higher than legal.

Total sales of cannabis for the quarter ended March 31 totaled $ 9.7 million, and totaled $ 18.6 million at the end of the year.

When Cannabis NB launched last October, former president and CEO Brian Harriman Predicted sales of $ 45 million in the first fiscal year, which he believes will result in a breakout or a small loss after start-up and operating costs are introduced.

Harriman resigned Earlier this month.

On Tuesday, CEO Lara Wood, described the financial results "pretty well" only 22 weeks of sales since the stores opened on October 17, when cannabis leisure became legal throughout Canada.

"We knew there would be challenges and unknown in this new industry," Wood said.

But the agency did not understand the supply issues are going to be "as challenging as they are," both in terms of scope and product of products, she said.

"What we see anecdotal from our customers is the demand on which we expected it to be, but we just do not need all the products in our portfolio in the right quantities to meet the demand now."

"There is a slow but steady improvement," Wood said.

Store sales in the fourth quarter totaled $ 9.4 million, according to unaudited data released on Tuesday. (Julia Wright / CBC)

"As our partners continue to get us the products we originally requested, you're going to see a wider range of price points, you're going to see a wider range of products, we're going to be a bit more competitive on price … and I think it would be kind of appealing to customers And return them more regularly. "

The agency is also confident that it meets the goals of providing safe products, reducing the illegal market and creating public awareness.

Distribution of sales

The loss for the quarter was $ 4.6 million, compared with $ 7.1 million in the preceding quarter.

Store sales in the fourth quarter were $ 9.4 million, while online sales were $ 0.3 million, according to data

Dried flower sales accounted for 85% of sales; Extracts, 12 percent; Sales of seeds, 0.2 percent, and apparel, 2.7 percent.

Company LM Drink will produce cannabis results PS. Into its results at the end of the year, according to the publication.

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