Nova Cannabis, the Canadian marijuana retailer behind the Value Buds discount chain, reported a net loss of 11.2 million Canadian dollars ($8.2 million) for its 2022 fiscal year, an improvement from a $20.6 million net loss in 2021.
Revenue for the fiscal year ended Dec. 31 was CA$226.4 million, up 68.5% compared to 2021.
Nova’s gross margin for the year was 19.4% of sales, compared with 18.5% of sales the year before.
“Our revenue growth is accompanied by gross margin growth, as we’ve started to adjust pricing in certain areas where the competitive pressures have waned,” Nova CEO Marcie Kiziak said in a statement.
“This, along with growing revenues from data analytics licensing and the successful launch of our private label products in partnership with SNDL, gives us levers to drive future gross margin growth as we capture greater market share, further validating our strategy.”
SNDL, formerly known as Sundial Growers, is the majority shareholder of Nova and the lender of the Edmonton, Alberta-based company’s revolving credit facility.
Nova’s fourth-quarter revenue totaled CA$61.4 million, an increase of 4.2% from the previous quarter and 28.9% from the fourth quarter of 2021.
Compared to the third quarter, same-store sales in Ontario grew 2.7% and same-store sales in Alberta grew 1.8%.
Nova’s fourth-quarter net loss was CA$4.8 million, compared with a CA$5.1 million net loss in the same quarter the year before.
The retailer reported liquidity of CA$11.4 million as of the end of 2022, including its credit facility from SNDL.
Nova had 91 stores in Canada as of Tuesday.
The company anticipates acquiring 26 more stores upon the closing of its strategic partnership with Calgary, Alberta-based SNDL.