Canadian cannabis firm Fire & Flower reports CA$79 million annual net loss

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(This story has been updated to note the CA$79 million in the headline was an annual net loss.)

Major Canadian cannabis store chain Fire & Flower Holdings has reported total revenue of 128.1 million Canadian dollars ($103 million) for its fiscal year ended Jan. 30, with an annual net loss of CA$79 million.

The Toronto-based company attributed the net loss largely to “non-operating charges including debt extinguishment and finance costs, offset by a gain on revaluation of derivative liabilities,” plus operating losses as the company expands, including its 2020 acquisition of competitor Friendly Stranger.

Fire & Flower reported CA$43.2 million in total revenue for the fourth quarter ended Jan. 30, an increase of 30.5% over the previous quarter.

The company’s quarterly revenue included retail sales of CA$33.2 million, distribution revenue of CA$7 million from its Open Fields wholesale business in Saskatchewan, and CA$3.1 in sales from its Hifyre digital retail and analytics platform.

Quarterly same-store sales increased by 36.8% over the fourth quarter of 2019.

Fire & Flower currently operates 80 cannabis stores in five Canadian jurisdictions, including:

  • 40 in Alberta.
  • 29 in Ontario.
  • Nine in Saskatchewan.
  • One in Manitoba.
  • One in Yukon territory.

The retailer said its Spark Perks loyalty program now has 250,000 members.

In February, Fire & Flower announced a deal to license its brand to American Acres Managers, which has plans to open stores in Arizona, California and Nevada.

Shares of Fire & Flower trade on the Toronto Stock Exchange as FAF.