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Fire & Flower Holdings Corp. (TSX: FAF) (OTCQX: FFLWF) announced its financial results for the fiscal  2023 first quarter ending March 31, 2023 in Canadian dollars. The first quarter revenue  increased 5.3% to $43.1 million versus last year’s $40.9 million for the same time period in 2022.

Fire & Flower also delivered a net loss of $10.1 million, slightly higher than last year’s net loss of $9.9 million. The company had cash and cash equivalents balance of $8.2 million at the end the quarter.

“Our first quarter of 2023 is a clear demonstration of our continued discipline on delivering positive improvements in our overall operational results. Once again, we saw same-store sales and gross margin growth. As we look towards 2023 as a transformational year, the company is focused on our core retail business, supported by Hifyre which enables us to deliver higher gross margin percentages and the best available products to our customers,” said Stéphane Trudel, Chief Executive Officer of Fire & Flower.

Retail Detail

Retail revenue for the quarter noted that increased 9.1% from $29.6 million last year to $32 million this year despite having nine fewer stores. The company also stated that the year-over-year same-store sales increased of 17.2%. The company had 92 stores open and in operation at the end of March.

Wholesale sales fell from last year’s $8.4 million to $7.8 million and revenue from the digital platform was flat at $2.9 million.

Cash Crunch

As of March 31, 2023, the company reported that it  had negative working capital of $12.8 million (December 31, 2022 – negative $9.8 million). Fire & Flower also had a net loss of $10.1 million and negative cash flow from operating activities of $2.6 million (April 30, 2022: $6 million). At the end of the quarter, the company had accumulated deficit was $314.3 million (December 31, 2022: $304.2 million). The company said it is actively pursuing additional financing options to raise additional capital in order to fund its operations and meet its future growth targets, including ongoing negotiations in respect of both non-dilutive debt financing and equity financing at preferred rates.

The company did note in its filing that it received a loan of $11 million from an investor that matures in December 2023. The investor has first priority security on all of the assets of the company.

“Consolidation opportunities in the industry that are fully accretive to our business are a key priority as we look to a long-term goal of achieving 10% market share. While keeping our eye on our long-term vision, our teams are working diligently to generate savings in SG&A expenses by simplifying our business and building value in core assets,” concluded Mr. Trudel.

The post Fire & Flower Revenues Rise Slightly In First Quarter appeared first on Green Market Report.

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Debra Borchardt, KahliBuds, 420GrowLife