Business
Heritage Cannabis Reports Third Quarter 2021 Financial Results
Heritage Cannabis Reports Third Quarter 2021 Financial Results.
About this update from Trees Corporation
[{"type":"text","content":"\nHeritage Cannabis Holdings Corp. (CSE: CANN) (OTCQX: HERTF) (“Heritage” or the “Company”), today announced its financial results as at and for the three- and nine-month periods ended July 31, 2021 (“Q3 2021”). All figures are in Canadian dollars unless otherwise noted.\n\nKey Financial Highlights of Fiscal Q3 2021\n\n\nGross revenue climbed to a record $5.1 million in the third quarter of 2021, an increase of $2.7 million or 114% from the same period in the prior year.\n\n\nGross profit in Q3 2021 was $1.2 million, with gross margins improving 217% from -$1.1 million in the same period in the prior year.\n\n\nSG&A costs as a percentage of revenue increased to 93% in the third quarter of 2021, compared to 55% in the third quarter of 2020. The increase was attributed to a number of one-time costs related to product launches as well as repositioning pricing on products in highly competitive categories.\n\n\nStrong Balance sheet with net working capital of $21.5M, and cash and equivalents of $4.6 million as of July 31, 2021.\n\n\n“Given the headwinds that many are facing in the industry, Heritage successfully expanded its product portfolio and distribution across Canada quarter-over-quarter which culminated with a second straight record quarter for gross revenues.” stated David Schwede, Chief Executive Officer of Heritage. “While the impact of the forest fires on the West Coast forced us to curtail production and shipments, our team worked extremely hard to produce a record top-line quarter. Also, we made a strategic decision in the quarter to invest in our platform - a combination of one-time product innovation costs and increasing our bench strength - in order to ensure we are positioned to sustain continued growth in the coming quarters. Our strategy shift, in less than one-year, has been dramatic and successful. We now have seven brands in Canada that are gaining strong followings in both retail and on-line sales channels, and our expanded U.S. strategy is continuing to advance with our partnerships in the near-term coupled with our U.S. e-commerce launch for ArthroCBD. While we are continuing to make changes to strengthen the platform, we are very confident that the combination of our popular brands and product innovation expertise has formed the foundation for a platf...