Trees Corporation (NEO:TREE.AQN) has reported a strong rise in fiscal 2021 revenue as it opened more stores and quadrupled sales of cannabis.
The company reported cannabis sales of $4.3 million for the year to December 31, 2021, a 305% increase over the prior year, resulting in total revenues of $4.6 million, a year-over-year increase of 285%. Gross profit jumped 223% to $1.6 million.
“Our performance in 2021 is a testament to the strength of the entire Trees team to grow our consumer base and build value for shareholders,” the company's CEO Michael Klein said in a statement. “In the year ahead, we will continue with our strategy to scale our in-store retail operations and digital platforms, uniquely engaging with the 360-cannabis consumer."
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The company reported a net loss of $13.3 million for the year, including $10.4 million of non-cash charges relating to relations of financial obligations and transaction costs in connection with a series of corporate transactions undertaken during the year including its go-public transaction on December 22, 2021.
"With these corporate changes behind us, Trees is now in a position to deliver substantial growth and increasing profitability in 2022 and beyond," the company's president and chief financial officer Jeff Holmgren added.
After growing its network to 11 Trees branded stores, seven corporate-owned stores in Ontario and four in British Columbia, the company said it expects to open two additional stores in the two provinces in the second quarter of 2022.
It ended the year with $1.3 million in cash, an increase of $1.1 million from a year earlier.
"Through 2021, Trees has evolved from a private single store operator to a publicly listed platform of 11 Trees branded stores in Ontario and British Columbia," Holmgren concluded. "With significant announcements in the first quarter of 2022, Trees has demonstrated an ability to execute on an acquisition-based growth strategy and we expect will continue to unfold through the balance of the year.”
Trees is a cannabis company at the intersection of community, content, and commerce. Publicly traded, Trees offers a differentiated retail experience, combined with digital platforms cannabisMD.com and askCMD.com that aim to educate and amplify, unlocking emerging consumer segments and need states that allows Trees to uniquely engage the 360 cannabis consumer.
Contact the author at stephen.gunnion@proactiveinvestors.com