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SLANG Sees Revenue and Gross Profit Surge

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SLANG Worldwide Inc. SLNG SLGWF revealed an increase in both revenue and gross profit for the three and nine months ended Sept. 30, 2023.

β€œThe third quarter was another solid quarter for SLANG, with both revenue and gross profit increasing sequentially and year-over-year. Impressively, all our operating business units exceeded expectations for the quarter,” said John Moynan, CEO of the Toronto-based cannabis consumer packaged goods (CPG) company.

Q3 2023 Financial Results

  • Total revenue reached CA$ 9.1 million ($6.7 million), up from CA$ 8.2 million in the prior year’s period.
  • Gross profit amounted to CA$4.8 million, compared to CA$3.6 million in the third quarter of 2022.
  • Gross profit margin was 53%, up from 44% in the third quarter of last year.
  • Net loss decreased to CA$5.1 million from CA$6.4 million in the corresponding period of last year.
  • Total expenses amounted to approximately CA$6 million, down from CA$8.6 million in the prior year’s period.

Nine-Month Period Ended Sept. 30

  • Total revenue amounted to CA$ 28.3 million, up from CA$ 26.4 million in the prior year’s period.
  • Gross profit totaled CA$15 million, compared to CA$11.7 million in the third quarter of 2022.
  • Net loss decreased to CA$10.4 million from CA$14.7 million in the corresponding period of last year.
  • Total expenses amounted to approximately CA$18 million, down from CA$23.2 million in the prior year’s period.
  • As of Sept. 30, 2023, the company had CA$39.6 million in total assets and CA$34.6 million in total liabilities, compared to CA$42.7 million and CA$30.3 million, respectively on Dec. 31, 2022.

Outlook

β€œAcross our geographies, we continue to maintain a leadership position as we scale our operations and position SLANG for continued growth,” Moynan said. β€œIn Maryland and West Virginia, through our strategic partnership with Trulieve, we have integrated high-growth channels and effectively competed in the country’s most competitive markets in a cost-effective manner.”

SLANG entered term-loan financing with Trulieve Cannabis Corp. TRUL TCNNF and two of its shareholders Pura Vida Investments and Seventh Avenue Investments for aggregate proceeds of $17.3 million in 2021.

The strategic partnership with Florida medical cannabis giant has yielded results, such as the successful launch of SLANG’s vape brand, O.pen in Trulieve’s nine West Virginia retail locations and through its wholesale network composed of 40 dispensaries throughout the state.

See also: SLANG Q1 Revenue Grows 29% YoY, Here Are The Details

SLGWF Price Action

SLANG’s OTC shares traded up 3.77% at $0.028 per share at the time of writing on Tuesday morning.

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Photo: Courtesy of NikolayFrolochkin and ganjaspliffstoreuk by Pixabay

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