CLS Holdings USA (CSE:CLSH, OTCQB:CLSH) Inc posted 10% growth in fiscal 2Q 2022 revenue at $5.4 million as its City Trees branded products continued to be in high demand.
The firm’s 2Q revenue growth – up from the $4.9 million it posted in the comparable year-ago quarter – was largely driven by the success of City Trees, which saw a 55% sales increase over last year’s levels.
During the three-month period to end November 30, 2021, CLS posted a gross profit margin of over 50% for the quarter and a 4% increase in quarter-over-quarter revenue for fiscal 2022.
READ: CLS Holdings USA says its City Trees brand wins first place in two categories at High Times Cannabis Cup
Oasis Cannabis, CLS’s retail division, saw its average spend per customer hold steady at over $55, consistent with the prior year’s quarter.
The firm also decreased its net loss to $345,472 from $849,376 in fiscal 2Q 2021.
CLS’s performance came during a time of depressed cannabis sales in the wider Nevada market, where the Las Vegas-based company derives most of its business. State sales for September and October were down 8.4% compared to the previous respective months and down more than 10% from the comparable months during 2020. In addition, the market saw a downturn in cannabis flower numbers of 25% from last year.
"Despite a downturn in the legal cannabis market, we have seen a solid increase in City Trees' numbers," CLS COO Andrew Glashow said in a statement accompanying the numbers.
"This is a testament to the traction the brand has gained over the past year and its loyal customer base. Our ability to offer a consistently reputable and reliable product at an affordable price has been our strong suit and the brand's continued growth is a powerful indication of its resonance with consumers.”
CLS (Cannabis Life Sciences) is a diversified cannabis company that acts as an integrated cannabis producer and retailer through its Oasis Cannabis subsidiaries in Nevada and plans to expand to other states. City Trees is a Nevada-based cannabis cultivation, production and distribution company.
Contact Angela at angela@proactiveinvestors.com
Follow her on Twitter @AHarmantas