Franchise Global Reports Second Quarter 2022 Financial Results; Revenue increased $13.1 million year-over-year to $13.5 million
For the quarter, the Company’s German reportable segment achieved revenues of $13.5 milliongross profit of $1.0 million and the net income of $0.1 million.
For the period since the beginning of the year, the Company Germany reportable segment achieved revenues of $30.1 milliongross profit of $2.1 million and the net income of $0.4 million.
VANCOUVER, BC, August 26, 2022 /CNW/ – Franchise Global Health Inc. (“Global Franchise“or the”Company“) (TSXV: FGH) (FRA: WV4A) is pleased to report its results for the second quarter of 2022.
Clifford StarkeExecutive Chairman and Chief Executive Officer of Franchise Global, said, “The company’s German reportable segment continued its momentum during the quarter. Our results reflect the stability of our pharmaceutical business during a period of market volatility.
Mr. Starke continued, “We ended the quarter with total liquidity of $4.4 millionincluding cash from $2.4 million, and net assets of $9.3 million. Sales during the quarter of $13.5 million and $30.1 million since the beginning of the year do not include $2.0 million shipments made in early July, the arrangements for which were finalized during the quarter. Sales for the quarter were further impacted by the strength of the Canadian dollar against the Euro, as the Company’s sales are in Euros while the Company reports in Canadian dollars”.
Mr. Starke concluded, “Our strong distribution platform will prove invaluable as a Germany continues to accelerate the process of legalizing recreational cannabis.”
FINANCIAL AND OPERATIONAL HIGHLIGHTS OF THE QUARTER
Income from $13.5 millionan augmentation of $13.1 million from the second quarter of 2021.
Gross profit of $1.0 millionan augmentation of $0.8 million from the second quarter of 2021.
Net loss of $1.1 million compared to $1.0 in the second quarter of 2021.
The Company’s German reportable segment achieved a net profit of $0.1 million.
FINANCIAL AND OPERATIONAL HIGHLIGHTS FOR THE YEAR TO DATE
Income from $30.1 millionan augmentation of $29.4 million of the comparative period of 2021.
Gross profit of $2.1 millionan augmentation of $1.9 million of the comparative period of 2021.
Net loss of $18.1 million. Excluding one-time registration fees of $15.6 millionstock-based compensation of $0.8 million and depreciation of $0.3 millionthe net loss was $1.4 million.
The Company’s German reportable segment achieved a net profit of $0.4 million.
SECOND QUARTER 2022 FINANCIAL RESULTS
Revenue increased by 3,275% $0.4 million in the second quarter of 2021 at $13.5 million in the second quarter of 2022. The increase is mainly due to the acquisition of Phatebo GmbH (“Phatebo”), which contributed $13.4 million to revenue in the second quarter of 2022. The Company acquired 100% of Phatebo on December 31, 2021.
Gross profit for the second quarter of 2022 was $1.0 millionat the top $0.9 million or 900% of $0.1 million for the same period of the previous year.
The net loss for the second quarter of 2022 was $1.1 million. Excluding general expenses and other reportable segments, the Company’s German reportable segment achieved a net profit of $0.1 million.
Like a June 30, 2022the company has total liquidity of $4.4 million composed of species of $2.4 million as good as $2.0 million (€1.5 million) of undrawn capacity on Phatebo’s credit lines, as well as the net assets of $9.3 million.
A conference call hosted by senior management will be held on Tuesday, August 30, 2022 at 9:00 a.m. EST. Please join the conference call approximately ten minutes before the scheduled start time.
The connection details for the conference call are as follows:
Toronto local or international: 1-416-915-3239
Free (North America): 1-800-319-4610
About Global Franchise
Franchise Global, through its subsidiaries, is a multinational operator in the medical and pharmaceutical cannabis industries, with primary operations in Germany and with international operations, assets, strategic partnerships and investments. Franchise Global’s business objective is to develop a leading fully integrated European medical cannabis business, with the aim of providing pharmaceutical grade medical cannabis to distribution partners and ultimately patients, at competitive prices. competitive. For more information, please visit www.franchiseglobalhealth.com.
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Caution Regarding Forward-Looking Information
This press release contains “forward-looking information” within the meaning of applicable securities laws, including, without limitation, statements regarding Franchise Global’s business and prospects. Often, but not always, forward-looking information can be identified by the use of words such as “plans”, “expects”, “is planned”, “budget”, “expected”, “estimates”, “forecasts”. “, “intends”, “anticipates” or “believes” or variations (including negative variations) of these words and expressions, or statements formed in the future tense or indicating that certain actions, events or results “might “, “could”, “could”, “could” or “will” (or other variations of the above) be taken, occur, be realized or occur. Forward-looking information is based on expectations, management’s current estimates, beliefs and/or opinions and information currently available to it (including information obtained from third-party industry analysts and other third-party sources) and assumptions that it believes are not unreasonable in all the circumstances.
By its nature, forward-looking information is subject to known and unknown risks, uncertainties and other factors that could cause the actual results, performance or achievements of the Company to be materially different from the results, performance or future achievements expressed or implied by the forward-looking information. Readers are cautioned not to place undue reliance on forward-looking information. Please refer to the Company’s filing statement available on the Company’s SEDAR profile at www.sedar.com for further details of the risks and uncertainties facing Franchise Global. Any forward-looking information contained in this press release is expressly qualified by this cautionary statement, and the Company undertakes no obligation and does not intend to update any forward-looking information contained in this press release, whether or as a result of new information, future developments or otherwise, unless otherwise required by applicable law.
SOURCE Franchise Global Health Inc.
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