• Sat. Feb 24th, 2024

Trees Corporation Reports Record Q3 Financial Results, Touts Strong Growth And Profitability

ByJoana Scopel

Nov 15, 2022
Trees Corporation Reports Record Q3 Financial Results, Touts Strong Growth And Profitability

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.”

Get your daily dose of cannabis news on Benzinga Cannabis. Don’t miss out on any important developments in the industry.

Image by Shutterstock // Edited by Benzinga

Image and article originally from www.benzinga.com. Read the original article here.