SLANG Worldwide Announces Second Quarter 2024 Financial Results
SLANG Worldwide Inc. (CNSX: SLNG) (OTCQB: SLGWF) released its Q2 2024 financial results, reporting a 26% year-over-year decrease in revenue to $6.28 million. The company experienced a 38% decrease in gross profit to $2.69 million and a 9% decrease in gross margin to 43%. Operating expenses decreased by 12% to $5.47 million. SLANG reported a total comprehensive loss of $11.50 million, a 123% increase from Q2 2023. The company's Adjusted EBITDA was ($1.42 million), down from ($0.76 million) in Q2 2023. SLANG's CEO, John Moynan, cited increased competitive headwinds in Core and Emerging Markets as factors contributing to the decline in sales revenue, gross profit, and Adjusted EBITDA. The company is working with PGP Capital Advisors to pursue strategic and financial alternatives.
SLANG Worldwide Inc. (CNSX: SLNG) (OTCQB: SLGWF) ha pubblicato i risultati finanziari del secondo trimestre 2024, riportando una riduzione del 26% dei ricavi rispetto all'anno precedente pari a 6,28 milioni di dollari. L'azienda ha registrato una riduzione del 38% del profitto lordo a 2,69 milioni di dollari e una diminuzione del 9% del margine lordo al 43%. Le spese operative sono diminuite del 12% a 5,47 milioni di dollari. SLANG ha riportato una perdita complessiva totale di 11,50 milioni di dollari, in aumento del 123% rispetto al secondo trimestre del 2023. L'EBITDA rettificato di SLANG è stato di ($1,42 milioni), in calo rispetto a ($0,76 milioni) nel secondo trimestre del 2023. Il CEO di SLANG, John Moynan, ha citato l'aumento della concorrenza nei mercati core e emergenti come fattore contribuente al calo dei ricavi, del profitto lordo e dell'EBITDA rettificato. L'azienda sta collaborando con PGP Capital Advisors per perseguire alternative strategiche e finanziarie.
SLANG Worldwide Inc. (CNSX: SLNG) (OTCQB: SLGWF) publicó sus resultados financieros del segundo trimestre de 2024, reportando una disminución del 26% en los ingresos en comparación con el año pasado, alcanzando 6,28 millones de dólares. La empresa experimentó una reducción del 38% en la ganancia bruta a 2,69 millones de dólares y una disminución del 9% en el margen bruto al 43%. Los gastos operativos disminuyeron un 12% a 5,47 millones de dólares. SLANG reportó una pérdida comprensiva total de 11,50 millones de dólares, un aumento del 123% en comparación con el segundo trimestre de 2023. El EBITDA ajustado de SLANG fue de ($1,42 millones), disminuyendo de ($0,76 millones) en el segundo trimestre de 2023. El CEO de SLANG, John Moynan, citó el aumento de las presiones competitivas en los mercados centrales y emergentes como factores que contribuyen a la disminución de los ingresos por ventas, la ganancia bruta y el EBITDA ajustado. La empresa está trabajando con PGP Capital Advisors para buscar alternativas estratégicas y financieras.
SLANG Worldwide Inc. (CNSX: SLNG) (OTCQB: SLGWF)는 2024년 2분기 재무 결과를 발표하며 전년 대비 26%의 매출 감소를 보고하였습니다. 매출은 628만 달러에 달했습니다. 회사는 총 이익이 38% 감소하여 269만 달러로 줄었고, 총 이익률이 9% 감소하여 43%에 이릅니다. 운영 비용은 12% 감소하여 547만 달러가 되었습니다. SLANG은 총 포괄적 손실이 1150만 달러로 123% 증가했다고 보고했습니다. 회사의 조정된 EBITDA는 ($142만)으로, 2023년 2분기의 ($76만)에서 감소했습니다. SLANG의 CEO인 John Moynan은 매출, 총 이익 및 조정된 EBITDA의 감소에 기여하는 요인으로 핵심 및 신흥 시장에서의 경쟁 압력이 증가했다고 언급했습니다. 회사는 PGP Capital Advisors와 협력하여 전략적 및 재무적 대안을 모색하고 있습니다.
SLANG Worldwide Inc. (CNSX: SLNG) (OTCQB: SLGWF) a publié ses résultats financiers pour le deuxième trimestre 2024, rapportant une diminution de 26% des revenus par rapport à l'année précédente, atteignant 6,28 millions de dollars. L'entreprise a connu une diminution de 38% de son bénéfice brut, tombant à 2,69 millions de dollars, et une diminution de 9% de sa marge brute, à 43%. Les dépenses opérationnelles ont baissé de 12% pour atteindre 5,47 millions de dollars. SLANG a enregistré une perte compréhensive totale de 11,50 millions de dollars, ce qui représente une augmentation de 123% par rapport au deuxième trimestre 2023. L'EBITDA ajusté de SLANG était de ($1,42 millions), en baisse par rapport à ($0,76 millions) au deuxième trimestre 2023. Le PDG de SLANG, John Moynan, a cité l'augmentation des pressions concurrentielles sur les marchés principaux et émergents comme des facteurs contribuant à la baisse des revenus, du bénéfice brut et de l'EBITDA ajusté. L'entreprise collabore avec PGP Capital Advisors pour explorer des alternatives stratégiques et financières.
SLANG Worldwide Inc. (CNSX: SLNG) (OTCQB: SLGWF) veröffentlichte die finanziellen Ergebnisse für das zweite Quartal 2024 und berichtete von einem Rückgang der Einnahmen um 26% im Vergleich zum Vorjahr auf 6,28 Millionen US-Dollar. Das Unternehmen verzeichnete einen Rückgang des Bruttogewinns um 38% auf 2,69 Millionen US-Dollar sowie einen Rückgang der Bruttomarge um 9% auf 43%. Die Betriebsausgaben sanken um 12% auf 5,47 Millionen US-Dollar. SLANG berichtete von einem insgesamt umfassenden Verlust von 11,50 Millionen US-Dollar, was einem Anstieg von 123% im Vergleich zum zweiten Quartal 2023 entspricht. Das bereinigte EBITDA von SLANG betrug ($1,42 Millionen), ein Rückgang von ($0,76 Millionen) im zweiten Quartal 2023. Der CEO von SLANG, John Moynan, nannte die gestiegenen Wettbewerbsnachteile in den Kern- und Schwellenmärkten als Faktoren, die zum Rückgang der Umsätze, des Bruttogewinns und des bereinigten EBITDA beitrugen. Das Unternehmen arbeitet mit PGP Capital Advisors zusammen, um strategische und finanzielle Alternativen zu erkunden.
- Operating expenses decreased by 12% year-over-year to $5.47 million
- Vermont Q2 2024 wholesale sales increased to $0.38 million from $0.31 million in Q1 2024
- Alchemy Naturals CBD gummies saw growth, contributing $0.83 million in e-commerce sales for the first half of 2024
- Revenue decreased by 26% year-over-year to $6.28 million in Q2 2024
- Gross profit decreased by 38% to $2.69 million, with gross margin declining by 9% to 43%
- Total comprehensive loss increased by 123% to $11.50 million
- Adjusted EBITDA worsened to ($1.42 million) from ($0.76 million) in Q2 2023
- Cash and restricted cash decreased to $6.75 million from $9.04 million at the end of 2023
- Cash flows used in operating activities increased to ($1.46 million) for the first half of 2024
Toronto, Ontario--(Newsfile Corp. - August 27, 2024) - SLANG Worldwide Inc. (CNSX: SLNG) (OTCQB: SLGWF) ("SLANG" or the "Company"), a cannabis consumer packaged goods (CPG) company, today released financial results for the three and six months ended June 30, 2024. All figures in this press release are stated in Canadian dollars unless otherwise noted.
John Moynan, Chief Executive Officer of SLANG, said, "This quarter we achieved reduced operating expenses year-over-year, increased wholesale sales in Vermont as well as increased sales in our leading Alchemy Natural CBD gummies. However, we continue to see increased competitive headwinds in our Core and Emerging Markets, which have led to a decline in sales revenue, gross profit and Adjusted EBITDA1. The reduction in retail sales, as well as limited cash available for general working purposes and rising public company corporate overhead costs, negatively impacted the Company's available cash from operations. As a result of these factors, SLANG continues to work with PGP Capital Advisors as our financial advisor as we pursue a full range of strategic and financial alternatives. The SLANG management team, as well as the Board of Directors, would like to thank our shareholders for their continued support and emphasize that we are committed to seeking an acceptable resolution. We will update our shareholders as we manage through this process."
Second Quarter 2024 Financial Summary
Revenue for the three months ended June 30, 2024 ("Q2 2024") was
$6.28 million , compared with$8.44 million for the three months ended June 30, 2023 ("Q2 2023"), representing a26% decrease year-over-year. The reduction was primarily driven by a decrease of$1.78 million in Core Market2 sales, a decrease of$0.20 million in Emerging Market3 sales, a decrease of$0.09 million in e-commerce sales, and a decrease of$0.09 million in our distribution sales. Within the Core Market segment, the Company experienced a reduction of$0.51 million and$1.27 million in sales in Colorado and in Vermont, respectively.Gross profit of
$2.69 million (43% gross margin) in Q2 2024, compared with$4.35 million (52% gross margin) in Q2 2023, representing a38% decrease in gross profit and a9% decrease in gross margin year-over-year. Gross profit before fair value of biological assets was$3.23 million (51% gross margin) in Q2 2024, compared with$4.54 million (54% gross margin) in Q2 2023, representing a29% decrease in gross profit before fair value of biological assets, and a3% decrease in gross margin before fair value of biological assets year-over-year.Operating expenses of
$5.47 million in Q2 2024, compared with$6.24 million in Q2 2023 and$5.54 million in the three months ended March 31, 2024 ("Q1 2024"), representing a12% decrease year-over-year and1% decrease quarter-over-quarter. The reduction year-over-year was primarily driven by a decrease in salaries and wages, consulting and subcontractors, general and administrative, share-based payments offset by an increase in depreciation and amortization expenses. The reduction quarter-over-quarter was primarily driven by a decrease in salaries and wages and share-based payments, offset by an increase in insurance expenses.Total comprehensive loss of
$11.50 million in Q2 2024, compared with$5.16 million in Q2 2023, representing a123% increase year-over-year. The increase was primarily driven by an increase in impairment of$4.30 million , a decrease in gross profit of$1.66 million , an increase in financing cost and fair value adjustment of$1.62 million and an increase in other expenses of$0.43 million , offset by a decrease in operating expenses of$0.77 million a decrease in income tax of$0.27 million .EBITDA1 of (
$2.07 million ) in Q2 2024, compared with ($1.17 million ) in Q2 2023. The reduction in EBITDA is primarily attributable to a$1.72 million decrease in gross profit (excluding depreciation costs), offset by a reduction of$0.82 million in operating expenses (excluding depreciation) such as salaries and wages, consulting and subcontractors, general and administrative and share based payments.Adjusted EBITDA1 of (
$1.42 million ) in Q2 2024, compared with ($0.76 million ) in Q2 2023. The reduction in Adjusted EBITDA is primarily attributable to a decrease of$1.36 million in gross profit before fair value adjustments of biological assets (excluding depreciation costs), offset by a reduction of$0.70 million in operating expenses (excluding depreciation expenses, expected credit losses and share-based payments).$6.75 million in cash and restricted cash on June 30, 2024, compared to$8.32 million on March 31, 2024 and$9.04 million on December 31, 2023. Additionally, for the six months ended June 30, 2024, cash flows used in operating activities was ($1.46 million ), compared to cash flows used in operating activities of ($0.49 million ) for the six months ended June 30, 2023, a reduction of$0.97 million . This reduction was primarily attributable to decreased revenue and gross profit, offset by a reduction of expenditures and an improvement associated with non-cash working capital balances.
Second Quarter 2024 Operational Highlights
Vermont Q2 2024 wholesale sales were
$0.38 million , compared to$0.31 million in Q1 2024.The Company's Alchemy Naturals CBD gummies continue to see growth as Alchemy Naturals contributed
$0.83 million in e-commerce sales in the six months ended June 30, 2024, compared to$0.58 million in the six months ended June 30, 2023.
Second Quarter 2024 Financial Review
The consolidated financial statements were prepared in accordance with IFRS. The following is a selected presentation of the Income Statement for the three and six months ended June 30, 2024.
| (In thousands of Canadian dollars except per share data and percentages) | For the three months ended | For the six months ended | ||||||||||
| 30-Jun-24 | 30-Jun-23 | 30-Jun-24 | 30-Jun-23 | |||||||||
| Net Operating Revenue | 6,282 | 8,436 | 13,311 | 19,259 | ||||||||
| Cost of goods sold | 3,050 | 3,900 | 6,429 | 9,041 | ||||||||
| Gross Profit Before Fair Value Adjustment of Biological Assets | 3,232 | 4,536 | 6,882 | 10,218 | ||||||||
| Realized fair value amounts included in inventory sold | (659 | ) | (609 | ) | (1,239 | ) | (1,032 | ) | ||||
| Unrealized gain on changes in fair value of biological assets | 113 | 419 | 405 | 876 | ||||||||
| Gross Profit | 2,686 | 4,346 | 6,048 | 10,062 | ||||||||
| Gross Profit Margin | ||||||||||||
| Operating expenses | 5,469 | 6,235 | 11,011 | 12,015 | ||||||||
| Operating Loss | (2,783 | ) | (1,889 | ) | (4,963 | ) | (1,953 | ) | ||||
| Other items (FV adjustment, FX, gains/losses, taxes, etc.) | (8,713 | ) | (3,275 | ) | (12,555 | ) | (5,542 | ) | ||||
| Total Comprehensive Loss | (11,496 | ) | (5,164 | ) | (17,518 | ) | (7,495 | ) | ||||
| Earnings Per Share | ||||||||||||
| Basic | (0.05 | ) | (0.02 | ) | (0.08 | ) | (0.04 | ) | ||||
| Diluted | (0.05 | ) | (0.02 | ) | (0.08 | ) | (0.04 | ) | ||||
| (In thousands of Canadian dollars except percentages) | For the three months ended | For the six months ended | ||||||||||
| 30-Jun-24 | 30-Jun-23 | 30-Jun-24 | 30-Jun-23 | |||||||||
| Net Operating Revenue | 6,282 | 8,436 | 13,311 | 19,259 | ||||||||
| Cost of Goods Sold | 3,050 | 3,900 | 6,429 | 9,041 | ||||||||
| Realized fair value amounts included in inventory sold | (659 | ) | (609 | ) | (1,239 | ) | (1,032 | ) | ||||
| Unrealized gain on fair value of biological assets | 113 | 419 | 405 | 876 | ||||||||
| Cost of Goods Sold | 3,596 | 4,090 | 7,263 | 9,197 | ||||||||
| Gross Profit | 2,686 | 4,346 | 6,048 | 10,062 | ||||||||
| Gross Profit Margin | ||||||||||||
| Gross Profit before FV adjustment | 3,232 | 4,536 | 6,882 | 10,218 | ||||||||
| Gross Profit Margin before FV adjustment | ||||||||||||
| (In thousands of Canadian dollars) | For the three months ended | For the six months ended | ||||||||||
| 30-Jun-24 | 30-Jun-23 | 30-Jun-24 | 30-Jun-23 | |||||||||
| Total Comprehensive Loss | (11,496 | ) | (5,164 | ) | (17,518 | ) | (7,495 | ) | ||||
| EBITDA (Non-IFRS) | (2,065 | ) | (1,168 | ) | (3,546 | ) | (490 | ) | ||||
| Adjusted EBITDA (Non-IFRS) | (1,422 | ) | (762 | ) | (2,485 | ) | (22 | ) | ||||
See the Company's management's discussion and analysis for the three and six months ended June 30, 2024 (the "Q2 2024 MD&A"), for a detailed reconciliation of EBITDA and Adjusted EBITDA to Operating Income / (Loss). SLANG's financial statements and the Q2 2024 MD&A are available on SEDAR+ at www.sedarplus.ca, and on the Company's Investor Relations website at www.slangww.com.
Non-IFRS Measures
EBITDA and Adjusted EBITDA are non-IFRS financial measures that the Company uses to assess its operating performance. EBITDA is defined as net earnings (loss) before net finance costs, income tax expense (benefit) and depreciation and amortization expense. Management defines Adjusted EBITDA as EBITDA adjusted for other non-cash items such as the impact of unrealized fair values, share based compensation expense, impairments, one-time gains and losses, and one-time revenues and expenses. This data is furnished to provide additional information and are non-IFRS measures and do not have any standardized meaning prescribed by IFRS. The Company uses these non-IFRS measures to provide shareholders and others with supplemental measures of its operating performance. The Company also believes that securities analysts, investors and other interested parties, frequently use these non-IFRS measures in the evaluation of companies, many of which present similar metrics when reporting their results. As other companies may calculate these non-IFRS measures differently than the Company, these metrics may not be comparable to similarly titled measures reported by other companies. We caution readers that Adjusted EBITDA should not be substituted for determining net loss as an indicator of operating results, or as a substitute for cash flows from operating and investing activities.
About SLANG Worldwide Inc.
SLANG Worldwide Inc. is a branded cannabis consumer packaged goods company, with five distinct brands and products distributed across the U.S., operating in 13 legal cannabis markets. The Company has over a decade of experience operating in the nascent and highly regulated cannabis sector, and its partners enjoy the benefits of that experience. Learn more at slangww.com.
To be added to SLANG's email distribution list, please email SLNG@kcsa.com with "SLNG" in the subject.
Forward-Looking Statements
This news release contains statements that constitute "forward-looking statements." Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements, or developments in the industry to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur.
Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management of SLANG at this time, are inherently subject to significant business, economic and competitive risks, uncertainties and contingencies that could cause actual results to differ materially from those expressed or implied in such statements. Investors are cautioned not to put undue reliance on forward-looking statements. Applicable risks and uncertainties include, but are not limited to regulatory risks, risks related to changes in laws, resolutions and guidelines, market risks, concentration risks, operating history, competition, the risks associated with international and foreign operations and the other risks identified under the headings "Risk Factors" in SLANG's Q2 2024 MD&A and other disclosure documents available on the Company's profile on SEDAR+ at www.sedarplus.ca. SLANG is not under any obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.
Reader Advisory
Neither the Canadian Securities Exchange nor the Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
Company Contact
Mikel Rutherford, CFO
833-752-6499
KCSA Strategic Communications
Phil Carlson
SLANG@kcsa.com
________________________
1 EBITDA and Adjusted EBITDA are non-IFRS financial measures that is further described under the section "Non-IFRS Measures"
herein.
2 The Company's Core Market is comprised on Colorado and Vermont.
3 The Company's Emerging Market is comprised of states where the Company's branded products are produced and sold by the Company's third party license partners.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/221280
FAQ
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