The firm said it would keep investing in promotional events and optimizing its inventory management system.
Canadian extracts processor Adastra Holdings Ltd. (CSE:XTRX)(FRA:D2EP) reported its second-quarter financial results ending June 30, marking a three-fold rise in revenue from the previous year.
During the period, Adastra recorded revenue of C$10.9 million, a 205% hike from the second quarter of 2022. The company also posted income from operations of $235,000, compared with a loss from operations of $394,000 in the same period a year ago.
The company’s gross profit rose to $2.6 million, reflecting a 135% jump from the $1.1 million in the second quarter of 2022.
Operating expenses, which previously took up 42% of the revenue in the second quarter last year, dropped to 21% this quarter, showing the firm’s cost-efficient strategies.
CEO Michael Forbes lauded the first half of 2023 as a transformative period for the firm, noting a 248% revenue surge from the first half of 2022.
“This impressive growth is a testament to the resilience and adaptability of our hard working team,” Forbes said in a statement. “Heading into the next quarter, we remain focused to set new records, maintain our market leadership across Canada, and continue to generate revenue from our four primary verticals.”
The company attributes part of its success to intensive branding efforts for its primary products, Endgame and Phyto Extractions, with a special focus on expanding its presence in the Canadian market. Adastra said offerings currently dominate sales charts in Alberta, British Columbia, and have made meaningful inroads in Ontario.
“The Adastra team continues to work on growing the company’s brands by investing in promotional events which we expect to pay off in the long term,” CFO Lachlan McLeod said.
“In addition, we continue to work on implementing a new inventory management system which is anticipated to increase company-wide efficiencies in ordering, producing and shipping inventory.”
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