Drive-Thru Cannabis Sales Help C21: Same-Store Sales Up, But Revenue Down In Q3
Portfolio Pulse from Jelena Martinovic
C21 Investments Inc. reported a decrease in Q3 revenue by 4.5% year-over-year to $6.9 million, despite a sequential increase in same-store sales. The company highlighted the success of its new drive-thru initiative. Gross profit and margin were down from the previous year, but gross margin increased slightly sequentially. SG&A expenses remained stable, while net loss was reported at $376,150, contrasting with net income from the same period last year. Adjusted EBITDA was $0.9 million, consistent with the prior quarter. The company's shares saw a slight increase post-market close on Wednesday.
December 14, 2023 | 1:36 pm
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NEUTRAL IMPACT
C21 Investments Inc. experienced a decrease in Q3 revenue but saw an increase in same-store sales and maintained adjusted EBITDA. The introduction of drive-thru sales has been positive, and shares increased slightly after the report.
The mixed financial results with a decrease in revenue but stable EBITDA and positive same-store sales growth suggest a neutral short-term impact. The success of the drive-thru initiative is a positive sign, but the overall decrease in revenue and net loss may temper investor enthusiasm. The slight increase in share price post-report indicates a cautiously optimistic market response.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 100