Toronto, Ontario--(Newsfile Corp. - April 12, 2024) - SLANG Worldwide Inc. (CNSX: SLNG) (OTCQB: SLGWF) ("SLANG" or the "Company"), a leading global cannabis consumer packaged goods (CPG) company with a diversified portfolio of popular brands, today released financial results for the three and twelve months ended December 31, 2023. All figures in this press release are stated in Canadian dollars unless otherwise noted.
"In 2023, we took a deliberate approach to advancing our strategy of profitable growth, creating a leaner, more nimble SLANG. As a result, we ended the year with increased gross profit, higher margins, and lower operating expenses which resulted in significantly lower total comprehensive loss and lower adjusted EBITDA loss," commented John Moynan, Chief Executive Officer of SLANG. "With the fourth quarter historically our seasonally lowest revenue quarter, we took the opportunity to further fortify our business and refine our product offering, which will help us make meaningful progress on the path to profitability."
Moynan continued, "Throughout 2023, we continued to set ourselves apart from other cannabis players by strategically identifying and advancing opportunities in both our core and emerging markets to build our brand and drive continued financial growth. Initiatives such as our disposable and large-format vaporizers in Colorado, the build-out of our wholesale channel in Vermont, and the expansion of our THC-Free product portfolio have proved successful and will be key contributors to our ongoing growth. Looking to 2024, I believe that we are well positioned to outperform the market as we continue to identify opportunities to increase shareholder value as part of our strategic review."
Full Year 2023 Financial and Operational Summary
Recent Corporate Developments
Fourth Quarter 2023 Financial Summary
Full Year 2023 Financial Review
The consolidated financial statements were prepared in accordance with IFRS. The following is a selected presentation of the Income Statement for the three and twelve months ended December 31, 2023.
(In thousands of Canadian dollars except per share data and percentages) | For the three months ended | For the twelve months ended | ||||||||||
31-Dec-23 | 31-Dec-22 | 31-Dec-23 | 31-Dec-22 | |||||||||
Net Operating Revenue From Continuing Operations | 7,419 | 11,777 | 35,682 | 38,189 | ||||||||
Cost of goods sold | 3,618 | 6,077 | 17,007 | 20,566 | ||||||||
Gross Profit Before Fair Value Adjustment of Biological Assets | 3,801 | 5,700 | 18,675 | 17,623 | ||||||||
Realized fair value amounts included in inventory sold | (705 | ) | (1,298 | ) | (2,112 | ) | (2,976 | ) | ||||
Unrealized gain on changes in fair value of biological assets | 700 | 293 | 2,056 | 1,799 | ||||||||
Gross Profit | 3,796 | 4,695 | 18,619 | 16,446 | ||||||||
Gross Profit Margin | 51% | 40% | 52% | 43% | ||||||||
Operating expenses | 6,632 | 8,167 | 24,606 | 31,332 | ||||||||
Operating Loss | (2,836 | ) | (3,472 | ) | (5,988 | ) | (14,886 | ) | ||||
Other items (Impairment, FV adjustment, FX, gains/losses, taxes, etc.) | (4,616 | ) | (13,483 | ) | (13,597 | ) | (14,768 | ) | ||||
Total Comprehensive Loss | (7,452 | ) | (16,955 | ) | (19,585 | ) | (29,654 | ) | ||||
Earnings Per Share From Continuing Operations | ||||||||||||
Basic | (0.05 | ) | (0.15 | ) | (0.10 | ) | (0.29 | ) | ||||
Diluted | (0.05 | ) | (0.15 | ) | (0.10 | ) | (0.29 | ) |
(In thousands of Canadian dollars except percentages) | For the three months ended | For the twelve months ended | ||||||||||
31-Dec-23 | 31-Dec-22 | 31-Dec-23 | 31-Dec-22 | |||||||||
Net Operating Revenue From Continuing Operations | 7,419 | 11,777 | 35,682 | 38,189 | ||||||||
Cost of Goods Sold | 3,618 | 6,077 | 17,007 | 20,566 | ||||||||
Realized fair value amounts included in inventory sold | (705 | ) | (1,298 | ) | (2,112 | ) | (2,976 | ) | ||||
Unrealized gain on fair value of biological assets | 700 | 293 | 2,056 | 1,799 | ||||||||
Cost of Goods Sold | 3,623 | 7,082 | 17,063 | 21,743 | ||||||||
Gross Profit | 3,796 | 4,695 | 18,619 | 16,446 | ||||||||
Gross Profit Margin | 51% | 40% | 52% | 43% | ||||||||
Gross Profit before FV adjustment | 3,801 | 5,700 | 18,675 | 17,623 | ||||||||
Gross Profit Margin before FV adjustment | 51% | 48% | 52% | 46% |
(In thousands of Canadian dollars) | For the three months ended | For the twelve months ended | ||||||||||
31-Dec-23 | 31-Dec-22 | 31-Dec-23 | 31-Dec-22 | |||||||||
Total Comprehensive Loss | (7,452 | ) | (16,955 | ) | (19,585 | ) | (29,654 | ) | ||||
EBITDA (Non-IFRS) | (2,087 | ) | (1,822 | ) | (3,052 | ) | (8,710 | ) | ||||
Adjusted EBITDA (Non-IFRS) | (1,478 | ) | (56 | ) | (1,902 | ) | (3,645 | ) |
See the Company's management's discussion and analysis for the three and full year ended December 31, 2023 (the "Q4 2023 MD&A") for a detailed reconciliation of EBITDA and Adjusted EBITDA to Operating Income / (Loss). SLANG's financial statements and the Q4 2023 MD&A are available on SEDAR+ at www.sedarplus.ca, and on the Company's Investor Relations website at www.slangww.com.
Non-IFRS Measures
EBITDA, Adjusted EBITDA, adjusted gross profit and adjusted gross margin are non-IFRS financial measures that the Company uses to assess its operating performance. EBITDA is defined as net earnings (loss) before net finance costs, income tax expense (benefit) and depreciation and amortization expense. Management defines Adjusted EBITDA as EBITDA adjusted for other non-cash items such as the impact of unrealized fair values, share based compensation expense, impairments, one-time gains and losses, and one-time revenues and expenses. Management defines adjusted gross profit as gross profit before fair value adjustment of biological assets. Management defines adjusted gross margin as gross margin before fair value adjustment of biological assets. This data is furnished to provide additional information and are non-IFRS measures and do not have any standardized meaning prescribed by IFRS. The Company uses these non-IFRS measures to provide shareholders and others with supplemental measures of its operating performance. The Company also believes that securities analysts, investors and other interested parties, frequently use these non-IFRS measures in the evaluation of companies, many of which present similar metrics when reporting their results. As other companies may calculate these non-IFRS measures differently than the Company, these metrics may not be comparable to similarly titled measures reported by other companies. We caution readers that Adjusted EBITDA should not be substituted for determining net loss as an indicator of operating results, or as a substitute for cash flows from operating and investing activities.
Conference Call Details
Management plans to host an investor conference call on April 12, 2024 at 10:00 am ET to discuss the results.
Timing: Friday, April 12, 2024 at 10:00 am ET
Dial In: 1-(888) 440-5983 (US toll-free) or 1-(646) 960-0202 (international)
Conference ID: 6291438
Webcast: A live webcast can be accessed via the Company's website at www.slangww.com or https://events.q4inc.com/attendee/185029317
About SLANG Worldwide Inc.
SLANG Worldwide Inc. is the industry leader in branded cannabis consumer packaged goods, with a diversified portfolio of five distinct brands and products distributed across the U.S. Operating in 13 legal cannabis markets nationwide, SLANG specializes in acquiring and developing market-proven regional brands, as well as launching innovative new brands to seize global market opportunities and match evolving consumer tastes. The Company has over a decade of experience operating in the nascent and highly regulated cannabis sector, and its partners enjoy the benefits of that experience, with access to the SLANG playbook for successful operations, sales and marketing. Its strong product pipeline from uniquely positioned and scalable brands like O.pen, Alchemy Naturals, Ceres, Firefly, and partnerships with brands like Greenhouse Seed Company have a proven track record of success with the brands consistently ranking among the top performers in the states where SLANG operates. Learn more at slangww.com.
To be added to SLANG's email distribution list, please email This email address is being protected from spambots. You need JavaScript enabled to view it. with "SLNG" in the subject.
Forward-Looking Statements
This news release contains statements that constitute "forward-looking statements." Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements, or developments in the industry to differ materially from the anticipated results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur.
Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management of SLANG at this time, are inherently subject to significant business, economic and competitive risks, uncertainties and contingencies that could cause actual results to differ materially from those expressed or implied in such statements. Investors are cautioned not to put undue reliance on forward-looking statements. Applicable risks and uncertainties include, but are not limited to regulatory risks, risks related to changes in laws, resolutions and guidelines, market risks, concentration risks, operating history, competition, the risks associated with international and foreign operations and the other risks identified under the headings "Risk Factors" in SLANG's Q4 2023 MD&A and other disclosure documents available on the Company's profile on SEDAR+ at www.sedarplus.ca. SLANG is not under any obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.
Reader Advisory
Neither the Canadian Securities Exchange nor the Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
Company Contact
Mikel Rutherford, CFO
833-752-6499
Media and Investor Inquiries
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KCSA Strategic Communications
Phil Carlson
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Market Cap: | US$376K |
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