Choom Announces Q2 Financial Results
Vancouver, British Columbia--(Newsfile Corp. - March 2, 2022) - Choom Holdings Inc. (CSE: CHOO) (OTCQB: CHOOF) ("Choom" or the "Company"), a Canadian retail Company focused on delivering an elevated customer experience through high quality service, is pleased to report its financial and operating results for Q2 2022, ending December 31, 2021.
Q2 2022 Financial Highlights:
- Revenue of $4.21M versus $4.84M in Q1 2022
- Gross Margin of 37.53% versus 37.17% in Q1 2022
- Selling, general & administrative expenses of $2.08M versus $2.16M in Q1 2022
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. We are proud of how our team responded to these external factors allowing Choom to maintain business continuity in a difficult environment.
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.
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:
Vancouver locations continue to outperform as sales grew by 140% versus Q2 2021. We see Vancouver as a key organic growth market for the next twelve months as regulatory distancing between stores is far more favourable relative to other locations.
We continue to focus on consumer feedback, ensuring we understand what is most important to our customers. Product selection, store location and friendly and knowledgeable staff continue to be the three most important attributes for consumers, with price ranking fourth. Choom's customer Net Promotor Score for the quarter was 97.7%.
The Hamilton store location opened in the quarter in a promising power centre anchored by high traffic big box retail and we expect to see continued growth in the months ahead.
Margins increased 1.17% over Q2 2021 as we maintain a disciplined approach to driving profitable sales through store specific assortments and investment in cannabis 2.0 categories.
We continue to further develop Choom.ca into a prominent digital platform within the retail cannabis landscape, with a robust roadmap for 2022 further positioning Choom as a leader in the space. We continue to execute on our one-site, one-sound message across the website and stores, further integrating marketing, product and operations. We will have some exciting development releases in the coming quarter including website media placement and a relaunch of our Greencamp.com site.
About Choom™
Choom™ is a fast-expanding retail cannabis Company that has established an extensive store network across Canada. Choom™ is focused on delivering an elevated customer experience through high quality service. The Choom brand is inspired by Hawaii's "Choom Gang"-a group of friends in Honolulu during the 1970s who loved to have fun and smoke weed-or as the locals called it, "Choom". Evoking the spirit of the original Choom Gang, our brand caters to the Canadian market with the ethos of 'cultivating good times'.
For additional information contact:
Corey Gillon, CEO
Telephone: 604-683-2509
Chris Bogart, President
Telephone: 604-683-2509
Cautionary Statement on Forward-Looking Information
This news release contains forward-looking information relating to the Company's proposed activities and other statements that are not historical facts. Forward-looking information relates to management's outlook and anticipated events or results and includes statements or information regarding the future or prospects of the Company. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. These factors include risks and uncertainties associated with or arising as a result of delays in obtaining or an inability to obtain required regulatory approvals, access to sufficient quantities of cannabis, the results of diligence investigations, the actions of third parties, the results of negotiations with third parties, developments in the cannabis sector, the ability to access sufficient capital from internal and external sources, reliance on key personnel, regulatory risks and delays and other risks and uncertainties discussed in the management discussion and analysis section of the Company's interim and most recent annual financial statement or other reports and filings, including those made with the CSE and applicable Canadian securities regulators. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information.
NEITHER THE CANADIAN SECURITIES EXCHANGE NOR ITS REGULATION SERVICES PROVIDER HAS REVIEWED OR ACCEPTED RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/115349