Harvest One Cannabis Inc. (TSX-V:HVT, OTCQB:HRVOF) said it increased revenue and gross profit in its fiscal year ended June 30, 2021.
The company reported total net revenue of $7.96 million, compared to $7.78 million in the fiscal year 2020. The 2% year-on-year increase was driven by the company's best-selling LivRelief extra-strength transdermal CBD cream.
Harvest One said it clocked a gross profit of $1.91 million in the fiscal year 2021, a 24% year-on-year increase from the $720,000 profit it recorded the previous year.
"Our year-end financial results clearly illustrate that the Company is continuing to increase its revenues and significantly reduce operating and overhead expenditures to achieve profitability," Harvest One CEO Gord Davey said in a statement.
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The company managed to reduce expenses by 28% to $8.97 million from $12.47 million in the fiscal year 2020. The decrease stemmed from management's efforts to reduce costs and overheads to achieve profitability as part of its strategic review.
"This past year has been challenging to say the least. We have focused on reducing our costs and overheads to improve our financial position. In parallel, we have been relentless in a very restricted COVID and travel environment in attaining new customers, distribution partners, products, and channels that are expected to increase our revenues and set the Company up for future sustainable success,” added Davey.
“Management's efforts to uniquely position Harvest One as a hybrid cannabis-infused and non-infused CPG leader that develops and distributes innovative health, wellness, and selfcare products are resonating with consumers and generating improved profit margins. During our next fiscal year, we expect to continue to increase our revenues from recently negotiated distribution agreements and the introduction of new products in international markets," he said.
Looking ahead, the company said it anticipates sales volumes, net revenues, and Adjusted EBITDA to improve throughout the next fiscal year due to a full year of infused topical sales, expanded distribution coverage, launch initiatives, branding initiatives, improvements in gross profit, and a continued focus on reducing overhead costs.
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