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Cannabis

Unrivaled Brands reports sixfold increase in 2Q revenue; gross profit more than triples

The West Coast cannabis company generated total revenue of $17.56 million for the quarter, compared to $2.87 million for the same period a year earlier

Unrivaled Brands Inc (OTCQX:UNRV) has announced its second-quarter financial results, revealing significant year-over-year revenue and gross profit growth.

The West Coast cannabis company generated total revenue of $17.56 million in the three months ended June 30, 2022, including retail revenue of $10.95 million and cultivation/distribution revenue of $6.61 million. That’s more than six times the $2.87 million of revenue achieved during the same period of 2021, of which $2.32 million was retail revenue.

Gross profit was $8.27 million, more than triple the $2.72 million profit it made in the year-ago period.

READ: Unrivaled Brands to expand board of directors; launches national search

The surge could be attributed to Unrivaled’s merger with UMBRLA and its acquisitions of People's First Choice and SilverStreak Solutions last year. The moves, however, also meant additional costs to support expanded facilities and employees, the company said. To that end, selling, general and administrative expenses for the quarter rose to $19.07 million, compared to $4.70 million a year earlier.

Unrivaled said it realized an operating loss of $67.07 million during the quarter, against a loss of $1.97 million in the 2021 quarter, due to a $55.73 million charge for impairment of intangible assets and goodwill related to the UMBRLA and People's acquisitions.

Santa Ana, California-based Unrivaled is a multi-state vertically integrated cannabis company with operations in California and Oregon.

Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com

Follow him on Twitter @andrew_kessel

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