Shiny Health & Wellness Corp. recently released the company’s financial results for the second quarter of the 2023 fiscal year ended July 31, 2022, boasting continued growth and success of its cannabis-related portfolio.
The cannabis company, which operates ShinyBud retail locations throughout Ontario, reported record revenue for the quarter, posting $7.7 million, signifying an increase of 43%. In addition, a 39% increase in gross profit to an impressive $2.8 million, combined with a substantial company-wide gross margin of 36.1% and an ever-growing loyalty program which has nearly exceeded 16,000 members, positions the company well to maintain its current trajectory. And, according to Kevin Reed, Chairman & Chief Executive Officer at Shiny Health & Wellness Corp., it’s a trajectory that allows the company to continue differentiating itself from its competitors.
“We’re pleased with the solid performance from our cannabis line of business as we continue to demonstrate year-over-year revenue growth, strong gross margins, rising loyalty program enrollment, strengthened industry partnerships through our Data Program, and positive EBITDA only mid-way through our first fiscal year,” he says. “Concurrently, we made headway establishing an active pipeline of pharmacy targets to deliver on our expanded retail strategy into health and wellness with our first pharmacy location expected to close next week. We’re determined to set our company apart and execute against our vision of becoming a trusted source for health and wellness solutions and services across Ontario.”
The company’s retail strategy, which has served it well to this point, includes an expansion of its current store portfolio throughout the province, as well as a foray into pharmacy. Shiny Health Corp. currently operates 28 ShinyBud Inc. corporate retail establishments in Ontario, with plans to grow it further to a total of 35 corporate stores and 15 franchise locations within the next year.
In addition, within its existing retail strategy, the company plans to aggressively pursue growth driven by health and wellness. It’s a move that Shiny Health & Wellness explains will include the development of a new line of business for the company that will focus on establishing a comprehensive network of pharmacies located in communities throughout Ontario. By leveraging its retail-related acumen and experience, the company hopes to open somewhere in the region of 5 to 10 retail pharmacies, under its subsidiary mīhī Health & Wellness, in the province by the end of January 2023.
A means by which to set itself apart from other cannabis retailers operating in Ontario and elsewhere, expansion into pharmacy provides Shiny Health & Wellness to build on its already strong reputation across the province and enhance its brand presence further. And, according to Jude Pinto, the company’s Chief Financial Officer and Chief Information Officer, it’s an expansion that is currently going according to the company’s lofty plans. Pinto says, “Shiny Health & Wellness’ second quarter results comprise of the second full quarter of operations following consolidated cannabis acquisitions and demonstrate a positive cash flow consistent with our plan and our simultaneous investments in our strategic pharmacy initiative.”