National Access Cannabis Corp.
The firm generated $16.8 million in revenue at its retail stores during Q3 2019 and saw its profit margin rise to 32% from 31% in the previous quarter. It spent $11.5 million sourcing the goods it sold and generated a profit of $5.3 million.
Operating expenses at the dispensaries totalled $5.8 million, resulting in a loss of just over $500,000 from its retail business.
NAC also operates medical cannabis education clinics and this business pushed its total revenue slightly north of $17 million during Q3. It recorded a net loss of $4.8 million for the three-month period.
Adjusted EBITDA margin expanded to 14% in Q3 2019, compared to 11% in Q2-2019.
“In Q3 2019, the efforts of our team translated into steady growth in the Company’s top line while a focus on optimizing working capital and driving higher profitability drove significantly improved adjusted EBITDA on a sequential basis,” said chief executive Mark Goliger.
Last week, NAC announced two new retail licenses for Alberta, which will take its estate up to 34 stores. The plan is to grow the empire to 40 stores by the end of 2019 to cement its position as Canada’s largest cannabis retailer.
The retail industry is starting to gather pace and Alberta-based High Tide has just launched a 15th store in the city of Fort Saskatchewan. It expects its next eight Canna Cabana locations and the first KushBar site to be licensed as retail cannabis stores by the end of August, which would bring its total to 24 stores across Canada.
Fellow retailer Fire & Flower has announced the issuance of shares in satisfaction of debenture interest payment, while in the U.S. Trulieve has reached a milestone by opening its 30th dispensary in Florida. The store is based in Fernandina Beach and it is giving patients a 25% discount today to celebrate the launch.
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