Auxly Cannabis Group Inc. (OTCMKTS: CBWTF) has announced its financial results for the third quarter and nine months ending September 30, 2021.
Q3 2021 revenue of $24.5 million
The company reported total net revenue of $24.5 million, representing a 95% YoY increase and 17% QoQ increase. Auxly had a negative adjusted EBITDA of $6.5 million, a modest improvement YoY but there was a quarter-over-quarter increase due to the high cost of sales related to product mix changes and more costs related to the launch of new products.
During the quarter, the company continued to expand its national recreational cannabis sale keeping first LP position in Cannabis 2.0 sales with a market share of 15.6% and getting to #6 LP position for recreational cannabis, and in October, the company moved to fifth in the recreational market with a market share of 7.3%. Also, the company continued its leadership in product innovation after it launched differentiated and new SKUs in Q3 2021, including Kolab Project 132Series Live Resin Black Cherry Punch Soft Chews and Back Forty 40s.
Auxly dominating vapor segment
CEO Hugo Alves said, “We are proud to report another record revenue quarter for Auxly. We continued to see growth in our Canadian cannabis recreational sales in the quarter, driven by our expanding product offering in dried flower and pre-rolls as well as our continued leadership of the 2.0 product segment where we maintained our #1 overall position driven by our dominance in the vapor segment where our consumers rewarded us with 24% of total national market share. We have continued to prudently invest in the people, assets and capabilities that we believe are necessary to win in our chosen consumer segments and product categories.”
Alves continued, “As we finish building our asset base, we will increase focus on cost optimization and increasing operational throughput efficiencies to enhance margins and increase profitability. We will continue to work tirelessly to serve our consumers by offering them innovative, quality products at a great value under brands that they can trust and love.”