Gaby announces a positive net result for the first quarter of 2022, here are the details
GABY Inc. GABLF GABE released its financial and operating results for the first quarter of 2022, revealing revenues of 7.3 million Canadian dollars, a 115% year-over-year increase.
First Quarter 2022 Financial Highlights
g44% gross profit margin improved by 7% from the respective period last year,
CAD Adjusted EBITDA500,000 is up from negative CA$800,000 in the respective period last year,
Net profit of C$1.5 million is up from negative C$2.5 million compared to the same quarter last year
In 2021 GABY reduce costs by $3.0 million which began to materialize in 2022.
In April 2022, Gaby launched a new premium flower brand, Dank Space™which has become the top-selling flower brand in the United States. Humanity dispensary in the first month of launch.
As part of GABY’s streamlining strategy, Sonoma Pac’s operations were halted in Q3 2021 and in Q1 2022 the company settled SPD’s debt to CDTFA and dissolved SPD eliminating remaining outstanding debts from C$3 million, strengthening its balance sheet and explaining part of the improvement in net loss compared to Q1 2021.
Management expects it will be able to maintain revenue, despite the normalization of consumption to pre-COVID levels, and continues to generate synergies in the future as its experienced retail management team continues to implement operational efficiencies and retail strategies well established. Management is particularly focused in 2022 on improving the margins and general and administrative expenses of the manufacturing and distribution under license activity and on improving its delivery activity.
Margot Micalleffounder and CEO of GABY said “I am impressed with the ability of our experienced operations team to continue to drive cost savings and realize synergies in this challenging market. Our dispensary, Mankind, is better marketed and our team sales team is better trained in retail techniques and product knowledge than ever before. These improvements coupled with our data analytics give GABY an edge in attracting new customers and retaining them. I am confident that we have the hands-on retail experience of any of our competitors and that bodes well for our future,” she concluded.
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GABY provides estimated financial results for fiscal year 2021 and summarizes previous operational milestones