The Valens Company Inc. VLNS VLNS released its second quarter fiscal year 2022 financial results for the period ended May 31, 2022, revealing net revenue of CA$24.0 million ($18,22 jmillion), representing an increase of 3.5% over Q1 2022.
Q2 Fiscal 2022 Highlights:
Adjusted gross profit was CA$3.4 million, or 14.0% of net revenue in Q2 2022, compared to CA$3.4 million, or 14.6% of net revenue, in Q1 2022.
SG&A decreased 6.2% to CA$20.9 million, or 87% of net revenue in Q2 2022, compared to CA$22.3 million, or 96% of net revenue in Q1 2022.
Adjusted EBITDA was CA$(15.9) million, in Q2 2022 compared to CA$(17.6) million in Q1 2022.
Cash flow from operations and cash flow from investing showed a combined large improvement of CA$4.8 million quarter over quarter.
Valens had cash and marketable securities of CA$26.1 million at the end of Q2 2022. The Q2 2022 cash and marketable securities position does not include the expected monetization of assets that is valued at ~CA$5 million on the balance sheet.
“The second quarter of 2022 clearly shows that we are executing on our 2022 objectives showing both modest revenue growth in the quarter and a meaningful decline in both cash burn and SG&A expenses. This is expected to accelerate in future quarters as the majority of cost savings from our integration initiatives have not been fully realized as these initiatives were executed part way through Q2 and into Q3 2022” stated Tyler Robson, CEO of The Valens Company.
Entered into an agreement with Signifi Solutions, to place cloud-managed Green Roads smart kiosks in various premium mall locations in bustling retail markets in the U.S. The agreement includes 12 premium mall locations with the potential for an additional 60 mall location in 2022.
Subsequent to quarter-end, Valens secured an exclusive cannabis partnership with ColdHaus Distribution, providing integrated logistics solutions for Valens-branded cannabis products across Ontario, Alberta, and British Columbia.
Subsequent to quarter-end, Valens enhanced its adult recreational market portfolio with the launch of Bon Jak, an exclusive cannabis brand in Quebec.