Unrivaled Brands (OTCQX:UNRV) Inc reported a big increase in its fourth-quarter and 2021 revenue as it scaled up its West Coast cannabis operations.
During the three-month period to end December 31, 2021, the Santa Ana, California-based company generated $22.7 million in revenue compared to $2.5 million in the same year-ago period.
For the 2021 financial year to end December 2021, Unrivaled reported $47.7 million in revenue compared to $6.2 million in the same 12-month period a year ago.
READ: Unrivaled Brands adds Paradise Smokes for California distribution
The company’s strategy throughout 2021 was focused on building scale, CEO Tiffany Davis told shareholders, which allowed the company to leverage numerous sector opportunities that successfully positioned Unrivaled as a dominant West Coast multi-state operator.
"While the board and I are pleased that these efforts resulted in 2021 fiscal year revenue growth of approximately 674%, market conditions continue to shift and it's important we pivot to capitalize on these changes,” Davis said in a statement. “As a result, I will be shifting our focus from acquisitions to integration to ensure more profitable and sustainable growth over the long term.”
Davis said that the firm will further refine its strategy and structure, including additions to the leadership team, establishing synergies across portfolio companies, and creating operational efficiencies through shared services.
“We believe these moves will effectively right size the business, improve margins, and ensure our acquisitions are accretive to strengthen our overall balance sheet,” Davis said. "We continue to work diligently to strengthen our collective future.”
In related news, the company successfully closed the sale of NuLeaf last week, resulting in the receipt of $6.5 million. The 4Q and full-year 2021 revenue figures exclude revenue from NuLeaf as it was “held for sale," so the $12.9 million in revenue for that operation in 2021 was excluded, the company said. Inclusion of NuLeaf would have resulted in approximately $60.6 million revenue for 2021.
The group also reported a net loss of $27 million for the year versus $30.9 million in 2020. It ended 2021 with $6.9 million in cash.
Unrivaled Brands (OTCQX:UNRV) is targeting $70 million in full-year 2022 revenue.
The company is focused on the cannabis sector with operations in California and Oregon.
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