- Choom (CHOO) has announced results for Q1 2022 highlighted by net income of C$5.07M
- Total liabilities decreased by $14.02M from Q4 2021
- The company intends to increase its exposure to more margin-accretive cannabis 2.0 categories
- It also has a robust 2022 roadmap in place to ramp up e-commerce sales
- Choom is a retail cannabis company with an extensive store network across Canada
- Choom (CHOO) is up by 25 per cent and is currently trading at $0.05 per share
Choom (CHOO) has announced results for Q1 2022 highlighted by net income of C$5.07M.
The quarter – ending September 30, 2021 – featured the following highlights:
- Revenue of $4.84M versus $4.88M in Q4 2021
- Gross margin of 37.17 per cent versus 38.35 per cent in Q4 2021
- SG&A of $2.16M versus $2.29M in Q4 2021
- Total liabilities decreased by $14.02M from Q4 2021
- Customer NPS score of 99.7 per cent for the quarter
- Opened a Toronto Liberty Village retail location
Sales results varied by province with B.C. revenue increasing over 200 per cent compared to Q1 2021. The Ontario and Alberta markets continued to feel pressure from a significant increase in cannabis retail licenses as well as the expansion of discount players.
Margins increased by 1.72 per cent over Q1 2021. They decreased slightly from Q4 2021 to Q1 2022 as a result of strategic price reductions to clear out low-performing SKUs.
The company intends to increase its exposure to more margin-accretive cannabis 2.0 categories prompted by B.C.’s 10-per-cent contribution to the edibles category, nearly two times the national average.
It also has a robust 2022 roadmap in place to ramp up its e-commerce sales.
Corey Gillon, Choom’s CEO, stated,
“The market continues to be hyper-competitive, both through price disruption and a significant increase in new competitor locations. Choom’s strategy remains focused on what we do best by providing an elevated customer experience through high-quality service.
We believe there is continued demand and a gap in the market for a premium option that we deliver on with every customer interaction at Choom. We are pleased with the strides we have made across the entire business and most notably on the restructuring and balance sheet improvements in Q1.”
Choom is a retail cannabis company with an extensive store network across Canada.
Choom (CHOO) is up by 25 per cent and is currently trading at $0.05 per share as of 12:48 pm EST.