Franchise Global Reports Second Quarter 2022 Financial Results; Revenues Increased by $13.1 Million YoY to $13.5 Million

2.1 min readPublished On: August 26th, 2022By

 

VANCOUVER, BCAug. 26, 2022

Clifford Starke, Executive Chairman and Chief Executive Officer of Franchise Global, stated, “The Company’s German reportable segment continued its momentum in the quarter. Our results reflect the stability of our pharmaceutical business during a period of market volatility.”

Mr. Starke continued, “We exited the quarter with total liquidity of $4.4 million, including cash of $2.4 million, and net assets of $9.3 million. Sales in the quarter of $13.5 million and $30.1 million year-to-date do not include $2.0 million of shipments made in early July for which arrangements were finalized in the quarter. Sales in the quarter were further affected by the strength of the Canadian dollar relative to the Euro as the Company’s sales are in Euros while the Company reports in Canadian dollars”.

Mr. Starke concluded, “Our solid distribution platform will prove to be invaluable as Germany continues to expedite the process towards legalization of recreational cannabis.”

FINANCIAL AND OPERATING HIGHLIGHTS FOR THE QUARTER
  • Revenues of $13.5 million, an increase of $13.1 million from the second quarter of 2021.
  • Gross profit of $1.0 million, an increase 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 net income of $0.1 million.
FINANCIAL AND OPERATING HIGHLIGHTS FOR THE YEAR-TO-DATE
  • Revenues of $30.1 million, an increase of $29.4 million from the comparative period of 2021.
  • Gross profit of $2.1 million, an increase of $1.9 million from the comparative period of 2021.
  • Net loss of $18.1 million. Excluding one-time listing expenses of $15.6 million, share-based compensation of $0.8 million and impairment expense of $0.3 million, net loss was $1.4 million.
  • The Company’s German reportable segment achieved net income of $0.4 million.
SECOND QUARTER 2022 FINANCIAL RESULTS

Revenues
Revenues increased 3,275% from $0.4 million in the second quarter of 2021 to $13.5 million in the second quarter of 2022. The increase is primarily due to acquisition of Phatebo GmbH (“Phatebo”), which contributed $13.4 million to revenues in the second quarter of 2022. The Company acquired 100% of Phatebo on December 31, 2021.

Gross Profit
Gross profit for the second quarter of 2022 was $1.0 million, up $0.9 million or 900% from $0.1 million for the same period in the prior year.

Net Loss
Net loss for the second quarter of 2022 was $1.1 million. Excluding corporate costs and other reportable segments, the Company’s German reportable segment achieved net income of $0.1 million.

Liquidity
As at June 30, 2022, the company has total liquidity of $4.4 million consisting of cash of $2.4 million as well as $2.0 million (€1.5 million) in undrawn capacity on Phatebo’s lines of credit, as well as net assets of $9.3 million.

(This information is primarily sourced from Franchise Global Health Inc. Highly Capitalized has neither approved nor disapproved the contents of this news release. Read our Disclaimer here).

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