CLS Holdings USA Inc. has achieved its first-ever profitable quarter.
For its first quarter of fiscal year (FY) 2022 ended August 31, 2021, the company said it generated net income of $427,599 versus a net loss of $1,145,036 in the year-ago period.
CLS also noted that 1Q revenue growth proved to be significant with a 45% year-over-year increase.
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The company saw an 11% reduction in selling, general and administrative expenses (SG&A), which dropped from 63.6% of revenue in 1Q FY21 to 52.6% in 1Q FY22.
CLS also was able to maintain the same gross margin of 52.7% for the quarter, year-over-year, which allowed the company to achieve its goal of being over 50%.
Meanwhile, Oasis Cannabis, CLS' retail division, saw a continual increase in transactions processed year-over-year for the months making up the quarter.
And City Trees, the company's branded product division, saw a number of successes this quarter:
- Recorded a continued increase in monthly year-over-year net revenue from June to August 2021
- Continued to hold its standing as the No. 1 selling tincture brand in the state of Nevada
- Achieved a ranking of third for the most units sold in Nevada for the entire concentrate category including dabbable concentrates and vapes for the quarter. This was an increase of 291.65% over the previous year's quarter
- Became the No. 1 selling brand in Nevada in units sold in the dabbable concentrate category for August 2021
CLS noted that both divisions saw a year-over-year increase in net income for the quarter, with City Trees achieving a 152.41% increase and Oasis a 21.39% growth.
"We are beyond proud to have achieved profitability for the first time in our company's history, which is a feat we could not have achieved without the hard work and dedication of our team members,” said CLS President & COO Andrew Glashow in a statement.
“With the announcement of our new joint ventures and other innovative launches on the horizon, we foresee continued growth and success in the future."
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