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Kiaro’s Revenue Increases 230%

Kiaro Holdings Corp. reported record revenues of $17.1 million for its fiscal year ending January 31, 2021. $12.1 million came from its retail cannabis stores and $5.0 million from their wholesale segment.

“Fiscal year 2021 was a transformational year for Kiaro where we showcased that we are one of the best-in-class cannabis retail operators,” stated Daniel Petrov, Chief Executive Officer of Kiaro. “Our significant revenue growth for fiscal year 2021 reflects the rapid scale of our business segments and the execution capabilities of the entire Kiaro team. Looking ahead into Fiscal 2022, we look forward to the continued engagement from cannabis consumers, growing our brand and market presence, and opportunities for accelerated revenue growth.”

The 230% increase in revenue is primarily due to the opening of four new retail locations, same store sales increases of 58% year over year, and an increase in the total addressable market and market presence for the wholesale segment. Kiaro has signed exclusive distribution rights with a few licensed producers to distribute cannabis related products in Saskatchewan.

For the twelve months ended January 31, 2021, Kiaro recorded a gross profit of $5.1 million, comprised of $4.6 million from the retail segment and $0.5 million from the wholesale segment. This represents a 292% year over year increase when compared to the thirteen months ended January 31, 2020, where gross profit was $1.3 million. However, despite controlling expenses and the economies of scale of operating more stores, Kiaro still posted a loss of $0.72 million, which is much better than the previous period where they reported a loss of $5.9 million. Strong revenue increases combined with fundamental management of operating expenses relative to revenue growth resulted in the improvements towards profitability.

It will be great to start seeing chains of cannabis stores posting positive profits.