Lifeist Wellness Inc said it expects year-over-year and sequential increases in revenue and gross profit for the fiscal third quarter ended August 31, 2021, based on preliminary and unaudited results.
The company added it anticipates that gross revenue for the fiscal third quarter ended August 31, 2021, will be approximately $7 million, an increase of approximately 12% over Q3 2020 and Q2 2021 revenues of $6.3 million, respectively.
The growth in revenue is backed by a solid foundation laid at the company’s wholly-owned subsidiary, CannMart Inc. In addition, the company anticipates more than doubling its gross profit in terms of dollars and percentage (after inventory write-downs) to approximately 15% in Q3 2021 compared to 7% in Q3 2020 and 6% in Q2 2021.
In a statement, Meni Morim, CEO of Lifeist said: “Positive trends and execution at our cannabis subsidiary, CannMart Inc. resulted in increased Q3 revenues and gross profit. CannMart is experiencing strong demand for its portfolio of products from consumers, retailers and provincial wholesalers across Canada. In addition to the estimated revenue increase, we anticipate more than doubling our gross profit compared to the same period in the previous year.
"We continue to strategically focus our attention on increasing gross margins within our current product portfolio and bringing on newer SKUs with significantly higher gross margins. Initial sales from our in-house brand 'Roilty' have been very well received by our provincial partners and we are excited to expand our product portfolio with the upcoming launch of our limited-edition SKUs made at subsidiary CannMart Labs Inc.’s state-of-the-art BHO extraction facility by the end of October. Overall, there has been a significant amount of work done across the Company, laying the foundations for growth, and I am very pleased to say these efforts are starting to pay dividends.”
Morim added: "CannMart's turnaround comes at an exciting time as Lifeist progresses along its evolution into a bold and disruptive wellness company, striving to connect humanity with safe, innovative and often daring pathways to individual definitions of wellness. We are on track to launch our nutraceuticals division in Q4 2021."
Lifeist expects to release audited third quarter 2021 financial results on or about October 29, 2021.
The company also said it has scheduled its 2021 Annual General Meeting to be held in Toronto on November 30, 2021.
Lifeist is a portfolio of wellness companies leveraging advancements in science and technology to enable individuals to find their personalized path to wellness.
The company's portfolio business units include CannMart, which operates a B2B wholesale distribution business facilitating recreational sales to Canadian provincial government control boards and the CannMart.com marketplace which provides Canadian medical customers with a diverse selection of cannabis products from a multitude of federally licensed cultivators and its US customers with access to hemp-derived CBD and smoking accessories.
It also owns Australian Vapes, the country’s largest online retailer of vaporizers and accessories; Findify, a leading AI-powered search and discovery platform; and Mikra, a biosciences and consumer wellness company seeking to develop innovative therapies for cellular health and recovery.
Contact the author at jon.hopkins@proactiveinvestors.com