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Trees Corporation TREE announced its third-quarter financial results Monday for the three and nine-month periods ended September 30, 2022, and 2021.
Highlights of the Third Quarter Of 2022
- Record Sales and System-wide sales of $2.5 million and $3.7 million respectively, for the Quarter;
- 40% growth in same-store corporate sales, from the third quarter of 2021;
- Gross margin of $1.0 million, or 36% of sales, a 71% increase from the third quarter of 2021 and a 27% increase from the second quarter of 2022;
- 13 Trees Cannabis branded stores currently operating at the date of this release, with a 14th store (Etobicoke, Ontario) scheduled to open before year-end; and
- Receipt of B.C. retail license approval, allowing for the imminent closure of B.C. 5-store acquisition.
The Company increased revenues in the Quarter by 60% from the first quarter of 2022, while total gross profit has increased by 78% over the same period due to a strengthening retail gross profit margin percentage which averaged 32% in the Quarter compared to 28% in the first quarter of 2022.
“I am very proud of our team and their exceptional work in delivering continued strong growth in sales and profitability over the past 9 months”, said Campbell Becher, CEO of Trees.
“With the imminent acquisition of our 5 Trees brand licensed store in B.C., anticipated to close before year-end, our quarterly revenue and gross profit margin will jump by nearly 50% beginning in the first full quarter after the closing,” Becher added.
Surging sales growth in 2022 is largely attributed to same-store sales growth of 40% over the third quarter of 2021.
“Our strong same-store sales growth demonstrates the ever-increasing depth of our relationships within existing communities in which we serve,” Jeff Holmgren, president and CFO said. “With a continued hyper-focus on the consumer experience, despite intense competition in Canadian retail cannabis markets, Trees is proving its operational excellence while forging a near-term path towards corporate profitability and long-term sustainable growth, one customer at a time.”
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