C21 Investments Unveils Fiscal Third Quarter 2023 Financial Results
C21 Investments Inc. (CSE: CXXI) (OTCQX: CXXIF), a vertically integrated cannabis company, has disclosed its unaudited interim financial statements and management discussion and analysis for the third quarter concluded on October 31, 2023. These results adhere to U.S. Generally Accepted Accounting Principles, which is the gold standard for financial reporting by cannabis issuers.
On the topline, C21 Investments announced revenue of $6.9 million, reflecting a stable trend as same-store sales demonstrated growth for the quarter. However, this was partially offset by a decline in wholesale volumes, leading to revenue that was down approximately four percent on a sequential basis. Gross margin did hold serve, however, coming in flat on a sequential basis.
Q3 Financial Highlights
- Revenue of $6.9 million – same store sales increased for a 2nd straight quarter, offset by a decline in wholesale volumes
- Earnings (Loss) per Share of ($0.00)
- Gross Margin of 40% – an increase of 50 basis points sequentially
- Cash Flow from Operations $2.7 million year-to-date; Q3 Operating Cash Flow and Free Cash Flow
- were positive adjusted for tax payments made in the quarter relating to prior periods
- Total Liabilities reduced $2.1 million year-to-date
- Appointed Aron Swan as Chief Operating Officer
On the all-important cash flow metric, the company registered its 18th consecutive quarter of positive cash flow. Notably, Q3 Operating Cash Flow and Free Cash Flow remained positive even after adjusting for tax payments made in the quarter, which were associated with prior periods. To date, Cash Flow from Operations amounting to $2.7 million on a fiscal year basis.
Total Liabilities were reduced by $2.1 million year-to-date.
During the quarter, C21 Investments made a key addition to its organizational structure with the appointment of Aron Swan as Chief Operating Officer. Mr. Swan was promoted from his previous role as Head of Nevada Operations, in what was a newly created role within the organization.
Commenting on the quarter, CEO and President Sonny Newman stated: “”We continued to see stable retail revenue and cash generation again this quarter, a testament to the strength of our operations and management team. We experienced a second consecutive quarter of increased same store sales, reflecting our strong brand and loyal customer base. We are also pleased with the success of our drive-thru initiative that commenced during the quarter, which has added new efficiencies to our operations.”