Cannabis retailer Fire & Flower posts revenue decline, cites competition
April 26, 2022 - Updated April 26, 2022
Bonno
Toronto-headquartered cannabis retail chain Fire & Flower Holdings reported declining sequential retail revenue for the fourth quarter of its fiscal year, citing heightened retail competition.
Read : overgrowned in a overcrowded market with nowhere to go.
Revenue for the quarter ended Jan. 29 was 42.7 million Canadian dollars ($33.3 million), down 6% from the previous quarter and 1.2% from the same quarter the previous year.
The company attributed its quarter-over-quarter revenue decline “to increasing competition from new (retail) licenses issued and pricing pressures in the retail market.”
The technology-focused retail chain reported annual revenue of CA$175.5 million, up 37% over the previous fiscal year.
Fire & Flower’s quarterly net loss was CA$19.5 million, with an annual net loss of CA$63.6 million.
The company opened 32 stores during the fiscal year, with 105 locations operating as of the end of January.
Fire & Flower also acquired Canadian cannabis delivery service Pineapple Express as well as marijuana websites PotGuide and Wikileaf.
More than 420,000 Canadians are signed up for the Fire & Flower loyalty program, the company said in a presentation to investors.
Major Fire & Flower investor Alimentation Couche-Tard recently announced plans to increase its stake in the retailer to 35%.
Shares of Fire & Flower trade on the Toronto Stock Exchange as FAF, and the retailer plans to list its shares on the Nasdaq exchange.
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