Choom Holdings Inc. (CSE:CHOO) (OTCQB:CHOOF) reported its financial and operating results for Q2 2022, ending December 31, 2021.
The Vancouver, British Columbia-based company noted that the second quarter of 2022 was a challenging quarter, with the impacts of the Omicron variant of COVID-19 significantly impacting not only customer traffic but store staffing as well. The retail company is proud of how its team responded to these external factors allowing Choom to maintain business continuity in a difficult environment.
Q2 2022 Financial Highlights
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Revenue of $4.21 million versus $4.84 million in Q1 2022
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Gross Margin of 37.53% versus 37.17% in Q1 2022
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Selling, general & administrative expenses of $2.08 million versus $2.16M in Q1 2022
The macro market beyond the pandemic remains extremely competitive for two primary reasons. First, the opening of new cannabis retail stores continues to outpace market growth, in particular in Ontario where there are nearly 1400 cannabis retail licenses in circulation, relative to 65 in 2020. Secondly, loss leading priced retailers continue their focus of buying market share, this was most prevalent in the Alberta market.
According to Choom, the cannabis retail sector remains fragmented with no retailer achieving greater than 5% market share, setting the stage for consolidation within the sector. Choom is and will remain very active in the M&A space over the coming months.
Q2 Operational Highlights
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Vancouver locations continue to outperform as sales grew by 140% versus Q2 2021.
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The Hamilton store location opened in the quarter
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Margins increased 1.17% over Q2 2021
