Benzinga | Jul 6, 2021 11:45AM EDT

Cannabis Earnings: Chalice Brands Pre-Announces Unaudited Q2 Record Revenue Of $6.8M

The consumer-focused cannabis company Chalice Brands Ltd., formerly Golden Leaf Holdings Ltd. (CSE:CHAL) (OTCQB: CHALF) pre-announced Tuesday its unaudited second-quarter earnings with a record quarterly revenue from continuing operations of $6.8 million.

The Portland, Oregon-based company noted that its record revenue of $6.8 million is 23% higher from the same period in 2020, when amounted to $5.5 million.

Chalice Brands further provided estimates for a quarterly gross profit of $3.1M or 46% gross profit margin compared to $1.7M or 37% gross profit margin rate in 2020.

The company attributed higher gross margins to improved sales of its vertical, in-house products

and advanced third-party processing revenues.

"We are immensely proud to execute another record quarter by focusing on profitable operations and the accretive acquisition of Homegrown Oregon," said Chalice's CEO and president Jeff Yapp. "The integration of Homegrown and the adoption of our vertical products within the new stores is ahead of schedule. The staff are highly engaged and motivated to be part of the Chalice family. The whole team is energized and focused on growth as we showcase our brand portfolio nationally and remain dedicated to our 'crawl-walk-run strategy.'"

John Varghese, the executive chairman added they will further work on building the company both organically, but also through strategic transactions.

Price Action

Chalice Brands shares were trading 5.23% lower at 92 cents per share at the time of writing Tuesday morning.

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