Auxly Reports Forth Quarter and Full Year 2022 Financial Results and Provides Outlook for 2023
TORONTO, March 31, 2023 /CNW/ – Auxly Cannabis Group Inc. (TSX: XLY) (OTCQB: CBWTF) (“Auxly” or the “Company“) today released its financial results for the three and twelve months ended December 31, 2022. These filings and additional information regarding Auxly are available for review on SEDAR at www.sedar.com. All amounts are Canadian dollars except common shares (“Shares“) and per Share amounts.
- Total net revenues of $94.4 million in 2022, an increase of $10.6 million or 13% compared to 2021;
- Made significant improvements to Adjusted EBITDA in the fourth quarter to negative $0.8 million, due to improved margins and lower SG&A, with momentum continuing into 2023;
- Fourth quarter total net revenues of $24.7 million, approximately $4.6 million lower than the same period in 2021, however $4.9 million or 20% greater than Q3 2022;
- Retained the #1 LP position in Canada for Cannabis 2.0 product sales for the third consecutive year, while improving sales of dried flower and pre-roll products, exiting the year with positive momentum as the #5 LP1 by share of market;
- Successfully integrated Auxly Leamington and continuously improved product quality during 2022; and leveraged Leamington’s large-scale cultivation to introduce new successful strains to the market while continuing to drive down costs to become one of the lowest cost facilities in the country;
- Rationalized assets and product SKUs to improve financial performance and used non-core asset sale proceeds to further strengthen the balance sheet;
- Recorded non-cash impairment of approximately $25.7M related to the closure of Auxly Annapolis and Auxly Annapolis OG cultivation facilities during Q1 of 2022 and $45 million in the third quarter of 2022 related to impairment of goodwill and other assets.