After reporting a loss of over $10 million for 2019, Inner Spirit Holdings (Spiritleaf) is slowly but surely moving back into the black.
In a statement released on Monday, the company reported $20.5 million in system-wide sales for this quarter, up 19% from last quarter, and up 343% from this time last year.
“This performance comes at a time when the country is facing ongoing challenges related to the COVID-19 pandemic,” said Darren Bondar, President and CEO of Inner Spirit. “The retail cannabis sector has been fortunate to be considered an essential service in our operating markets, and we have been able to continue advancing our business strategy this year.”
Since last year, Spiritleaf has added several new locations, including franchise locations, which contribute around 6% of sales.
In total, the company generated revenue of $5.4 million this quarter, up from $4.1 million last quarter, which amounted to $2.5 million in gross profit. It wasn’t quite enough to keep them out of the red, though, as they also reported a net loss of $1.2 million, but this loss is considerably less than this time last year, which was $2.8 million.
Just last quarter, the company had an Adjusted EBITDA loss of $0.1 million, however, this quarter their Adjusted EBITDA is in the positive at $0.5 million, so things are looking up.
Between franchises and corporate-owned locations, Spiritleaf has grown to operate 58 locations across the country and has no plans to stop any time soon. They hope to add 20 additional stores in Ontario, Alberta, and Newfoundland and Labrador, even hinting at potential stores in the works for British Columbia, Saskatchewan, and Manitoba.
“We are able to grow the Spiritleaf network […] due to the excellent support and loyalty of our customers, franchise partners, employees, investors, and strategic partners. We are focused on providing a premium and educational shopping experience to consumers and being the knowledgeable, authentic, and trusted voice for the cannabis experience in our communities,” said Bondar. “We know that operating effectively and efficiently will be key in the fast-growing retail cannabis sector, and we like our position and the positive impression we are making on our stakeholders.”