Cannabis retailer Fire & Flower reports net loss on growing revenue

Fire & Flower Holdings Corp., a major Canadian marijuana retail chain, reported 33.1 million Canadian dollars ($26 million) in revenue for the quarter ended Oct. 31.

The retailer’s third-quarter income represents 15.8% revenue growth over the previous quarter and 142% growth from the same quarter a year before.

Fire & Flower’s net loss for the quarter was CA$25.7 million.

The company attributed that loss primarily to CA$53.9 million in extinguishment losses related to the amendment of debentures and warrants held by investor Alimentation Couche-Tard – a Canadian convenience store chain operator.

Adjusted EBIDTA, a measure of profitability, was CA$1.2 million, compared with an adjusted EBIDTA loss of CA$300,000 in the previous quarter.

“We continue to work at maintaining positive adjusted EBITDA and aggressively pursue growth opportunities for the company,” CEO Trevor Fencott said in a news release issued Tuesday.

Fire & Flower has 67 currently operating cannabis stores, with licenses for four more. That figure includes:

  • 37 stores in Alberta.
  • 21 stores in Ontario.
  • 7 stores in Saskatchewan.
  • 1 store in Manitoba.
  • 1 store in Yukon Territory.

The company recently purchased competing recreational cannabis retailer Friendly Stranger, expanding its presence in the key market of Ontario.

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