Benzinga | Oct 7, 2021 09:23AM EDT

Chalice Brands Pre-Announces Q3 Results With Record Revenue Of $8M

Chalice Brands Ltd. (CSE:CHAL) (OTCQB:CHALF) pre-announced its financial and operating results Wednesday for the third quarter of 2021, revealing record quarterly revenues of $8.0 million, up by 31% year-over-year.

Q3 Preliminary Unaudited Financial Highlights

* The record quarterly revenues of $8.0 million reflect a full quarter of revenues from the company's Homegrown Oregon stores but only $0.1 million of revenues related to Cannabliss.

* Estimated gross profit margin for the second quarter 2021 of $3.7M or 46% gross margin compared to $2.1M or 34% in 2020. Gross margin improvements are due to continued growth in sales of vertical products manufactured by Chalice and increased third-party processing revenues.

"I am proud of our team's performance as we continue our year-over-year revenue growth in the third quarter," Jeff Yapp, CEO and president said in a statement. "By maintaining our focus on profitable operations and the accretive acquisition of Homegrown Oregon, the Company has immediately impacted the vertical contribution within the new stores ahead of schedule. The Chalice team is energized by our strategic mission to capitalize on untapped opportunities in Oregon and other states with significant room for consolidation, synergies, and vertical leverage."

The company will provide its full third-quarter financial report at the next earnings call, to be announced at a later date.

More recent news from Chalice:

The Week In Cannabis: FDA, CDC, Delta-8 THC, WADA, Canopy, Sundial, Canada, LatAm And More

Acreage Holdings Exits Oregon, Divests Retail Chain Cannabliss & Co

Chalice Brands Reports Record Quarterly Revenue Of $6.9M, Up By 26% YoY

Price Action

Chalice's shares closed Wednesday's market session 4.26% higher at 64 cents per share.

Photo: Courtesy of Tim Foster on Unsplash