CLS Holdings USA (CSE:CLSH, OTCQB:CLSH) Inc has released its initial 2022 outlook and issued a review of the financial and operational highlights that made 2021 the company's most successful and transformational year to date.
CLS pointed out that after experiencing strong performance in the 2021 calendar year, it expects 2022 to be even better and anticipates year-on-year revenue growth to accelerate while maintaining gross margins with continued EBITDA improvement.
Despite the Nevada cannabis market decelerating in 2021, CLS saw net revenues increase 44% year-over-year in 2021 and entered into two important joint ventures, which it says should transform the company and add substantial revenue at attractive margins.
The company said: "This next year has a lot in store, full of new products and stories to tell. We are excited about growing into other markets while giving back to the communities around us and continuing to invest in our people."
READ: CLS Holdings USA posts revenue growth of 10% in fiscal 2Q off the back of its City Trees branded products
Looking ahead in 2022, CLS said it recognizes the key to success is to focus on what it can control. Once the new joint ventures commence operations, the company noted that it will have direct control over its large expansion into the flower and pre-roll categories while continuing to capitalize on the current successes of City Trees and Oasis.
In its review of the previous year, CLS said: "2021 was a year to remember. We set out to accomplish some lofty goals and shake things up in the cannabis industry. We knew that if we were disciplined and executed on what we could control, we had the potential to achieve our best year ever.
"While the legal cannabis market in Nevada saw a deceleration of growth in 2021, our small but mighty company strongly grew YOY for the 3rd year in a row. This has everything to do with the teams we have in place on the ground working tirelessly to achieve a common goal, simply put, to be the best version of ourselves."
The company continued: "We also entered into several key joint ventures, which we strongly believe will strategically transform the CLS story. The significant benefits of these partnerships will be increasingly visible to our investors and our customers as we progress through 2022. The Company's primary wholesale brand, City Trees, further established itself as one of the leading brands in Nevada, achieving a top market share position across its categories and winning numerous industry awards for product quality and innovation."
"We take great pride in contributing to the cannabis industry as a whole and fostering change within our community. We would like to thank all of those who have contributed to our successes in 2021," CLS concluded.
CLS Holdings USA (CSE:CLSH, OTCQB:CLSH) is a diversified cannabis company that as an integrated cannabis producer and retailer through its Oasis Cannabis subsidiaries in Nevada and plans to expand to other states.
CLS stands for 'Cannabis Life Sciences', in recognition of the company's patented proprietary method of extracting various cannabinoids from the marijuana plant and converting them into products with a higher level of quality and consistency.
The company's business model includes licensing operations, processing operations, processing facilities, sale of products, brand creation and consulting services.
Contact the author at jon.hopkins@proactiveinvestors.com