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Lifeist (TSXV:LFST) sees profit increase in Q2, despite obstacles

Cannabis, Health Care
TSXV:LFST
28 July 2022 14:00 (EDT)

Source: Lifeist Wellness Inc.

Lifeist Wellness (LFST) released its Q2 2022 financial results, noting a $0.8 million decrease in net revenue but an increase in gross profit.

The 15 per cent decrease was due to a $1.0 million decline in Australian Vaporizer hardware revenue caused by a flood-related operational shutdown and a $0.6 million decline from the planned wind-down of hardware sales in Europe.

Despite the loss of two months of sales by Australian Vaporizers, gross profit before inventory adjustment increased to $0.7 million compared to $0.4 million in Q2 2021, with margins expanding to 16 per cent from 7 per cent.

Lifeist CEO, Meni Morim admitted that the Australian floods dampened what was otherwise a solid quarter for the company.

“While it’s been a difficult period for the broader cannabis industry, we’re generating measurable success and establishing a path to profitability for our recreational cannabis distribution platform. Meanwhile, while encountering industry-wide supply chain disruption challenges, our nutraceuticals business was still able to achieve the correct acquisition and retention metrics to enable profitable growth and I expect this execution in the coming quarters. As for Australian Vaporizers, following the effects of the devastating flood, the business re-opened its doors in May and generated sales operating metrics consistent with pre-shutdown levels, and that normally positive performance has continued into fiscal Q3 2022.”

Lifeist Wellness Inc. (LFST) is a portfolio wellness company leveraging advancements in science and technology to build breakthrough companies that transform human wellness. Portfolio business units include CannMart, CannMart Labs, the CannMart.com marketplace, Australian Vapes, and Mikra.

Lifeist Wellness Inc. (LFST) was trading steady at C$ $0.045 per share as of 2:05 pm ET.


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