Halo Collective Inc. announced revenue of $8.4 million for the fourth quarter of 2021, up $3.2 million, or 63 per cent, compared to the same period of 2020.
The company had reported sales of $5.1 million in Q4 of 2020.
Halo also reported sales of nearly 13 million grams of cannabis products, principally to dispensaries in Oregon and California, a 345 per cent year-over-year increase.
Among the annual highlights were reported revenue of $36.2 million, up $14.5 million, or 67 per cent, compared to $21.6 million in 2020, and sales of more than 32 million grams of cannabis products, principally to dispensaries in Oregon and California, a 381 per cent year-over-year increase compared to 2020.
Adjusted gross profit was $7.3 million, or 20.1 per cent gross margin, compared to gross profit of $5.2 million, or 24.0 per cent gross margin, in 2020. Adjusted EBITDA1 loss of $23.6 million compared to a loss of $6.9 million in 2020.
“Halo’s team is actively building significant shareholder value, even while the operating conditions remain difficult in the California and Oregon markets and pressuring our near-term financial performance,” CEO Kiran Sidhu said in a release reporting the year-end results.
“In our growing wholesale businesses, volumes are trending upward due to higher sales velocity and expanded market penetration, offsetting much of the downward pressure on prices and positioning us well for when pricing stabilizes. In our retail business, we’ve opened our first Budega dispensary in North Hollywood, California, and are seeing solid preliminary results in the first weeks of operation. Meanwhile, we have taken the necessary steps to rationalize the business to accelerate our path to profitability.”
Sidhu highlighted what he called the significant value the company is creating through its incubation efforts within its collective of assets.
“Take Akanda Corp. as an example. In 2020 we purchased two disparate international cannabis assets, Bophelo Bioscience & Wellness and CanMart and, after completing a reorganization of these assets and putting in place a team, strategy and structure, Halo is now the largest shareholder in this rapidly scaling international medical cannabis company with a stake worth over $100 million based on Akanda’s current market capitalization,” Sidhu said. “We are now assessing other opportunities with respect to Halo’s investments in cannabis businesses ancillary to our West Coast operations, including our investments in CBD and functional beverages, two of the fastest-growing categories in the consumer space that can be widely distributed.”
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