Halo Collective Revenue Declines 36.6% YoY, Here Is What You Need To Know

Author: Vuk Zdinjak | November 15, 2022 10:15am

Halo Collective Inc. (OTCQB:HCANF) (NEO:HALO) (Germany:A9KN) Q3 2022 revenue was $5.5 million, a 36.6% decrease compared to $8.7 million in Q3 2021.

Q3 2022 Financial Highlights:

Gross profit was $1.7 million with a margin of 30.7%, compared to gross profit $1.6 million with a margin of 18.8% in Q3 2021.
Adjusted EBITDA was a loss of $1.2 million compared to a loss of $4.5 million in Q3 2021.
Net loss was $5.8 million compared to net loss of $10 million in Q3 2021.
As of September 30, 2022, the company had unrestricted cash available in the amount of $1.7 million.

"In Q3 2022 we continued to improve operations. Despite downward pricing pressure, over-supply, and other challenging factors, Halo's financial metrics have improved. While revenue is down from Q3 2021, in California sales grew and Oregon is down due to a shift away from unattractive low-margin business segments such as consignment sales. Indeed both Halo's gross margin and total gross profit dollars increased despite lower revenue," stated Katie Field, executive chairman and CEO.

Field concluded, "I am excited to continue our progress through the fourth quarter of 2022. We plan to launch an original indoor flower brand and new genetics at our Pistil Point facility in Oregon, re-enter the Northern California market with Hush cartridges and pre-rolls, open our third Los Angeles dispensary, and continue to streamline non-core assets and business segments. We plan to continue rebuilding distribution in Oregon with an attractive cartridge offering. I remain confident that Halo is on the right path in our markets."

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