- Cannabis company SLANG Worldwide’s (SLNG) second quarter financial results have been dealt a blow by the onset of the COVID-19 pandemic
- The company reported a three per cent drop in revenue for the three months ending June 30, 2020, from C$4.7 million last year to $4.6 million
- Gross profit also fell from $3.3 million to $2.8 million, a decrease from the company’s 2020 first quarter profit of $2.9 million
- The decline in performance was largely attributable to weaker sales activity in April and May, but was offset by a rebound in June as markets began to re-open
- SLANG Worldwide (SLNG) is currently up four per cent and is trading at $0.13 per share
Cannabis company SLANG Worldwide’s (SLNG) second quarter financial results have been dealt a blow by the onset of the COVID-19 pandemic.
The Toronto-based company reported a three per cent drop in revenue for the three months ending June 30, 2020, from C$4.7 million in the same period of last year to $4.6 million this year.
This was largely due to weaker sales activity in April and May, which declined by approximately 50 per cent, but was offset by a rebound in June of more than 130 per cent year-over-year as markets began to re-open.
SLANG Worldwide noted that this momentum has continued throughout July and into August.
Gross profit for the quarter also fell to a total of $2.8 million, representing a substantial drop from $3.3 million in 2019 and a marginal decline compared to the company’s first quarter total of $2.9 million.
Chris Driessen, President and CEO of SLANG Worldwide, said the results were reflective of June’s resurgence in activities.
“Additionally, the decisive steps we have taken to adjust to the market environment have led to reduced operating expenses and more efficient use of our cash resources.
“The success we have experienced since the recovery in June is further proof that we are emerging from the challenges of the first half of the year even stronger, with revenues and momentum exceeding pre-COVID levels,” he added.
Chris also noted that the strengthened performance in July and August suggests that the worst of COVID-19’s impact is in the past, and that an improvement is likely in the second half of the year.
SLANG Worldwide has been active in launching new products and progressing its strategic partnerships in emerging markets. The company is now looking to consolidate its supply chain with the completion of pending acquisitions.
SLANG Worldwide (SLNG) is up four per cent and is trading at 13 cents per share at 11:14am EDT.