Ayurcann Holdings Corp. (CSE:AYUR, OTCQB:AYURF), a cannabis extraction company, said revenue in the third quarter of its fiscal year 2022 jumped nearly 7.7% year-over-year as it gained more traction in the market.
For its fiscal 3Q ended March 31, 2022, the rapidly growing Toronto-based company reported net revenue of $2.8 million, compared to $2.6 million in the 3Q in fiscal year 2021.
Ayurcann also logged $7.8 million in revenue for the nine months ended March 31, 2022, up 57% from the corresponding period in 2021. The $7.8 million figure also surpassed the company’s total revenue for the full fiscal year 2021.
The company also reported gross margins of $580,000 for the quarter, and $3.3 million for the nine-month period, maintaining strong control over its expenses.
Ayurcann said it reported a loss of $306,000 of operating income for the quarter, which was partially due to “increased inventory” in anticipation of new sales and products set to enter the Canadian market in July this year.
On the other hand, the firm noted that it continues to maintain “a strong positive operating income of $650,000 for the nine months ended March 31, 2022, continuing its profitable operations”.
In a statement accompanying the numbers, Ayurcann CEO Igal Sudman said: "As we gain more traction in the market, grow our offerings, and establish ourselves as a major player in the industry, we have proven again that Ayurcann is able to maintain a growing business and expand its market share."
Ayurcann highlighted that it has started to focus on its recreational brands and its products are available in over 1,000 locations. The Fuego-branded vapes are ranked in the Top 5 stock keeping units (SKUs) in the market, said the company.
Meanwhile, the firm’s Vida-branded tinctures and Glow-branded topicals have been shipped to Ontario, New Brunswick, Saskatchewan, Manitoba, and Alberta and will soon be available across the rest of the country.
In addition, the company has started to manufacture and ship new products across the country including high potency CBD products under the Joints brand.
Ayurcann also revealed that it plans to penetrate the market with an “additional 12 new SKUS” accepted by various retail boards. These include vapes, tinctures, dablicators, flower and pre-rolls and the company said it has a “goal of beginning cross-country shipping in July 2022”.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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