Fire and Flower Q1 Revenue Lifts 41% Over Short Q4


Fire & Flower Announces First Quarter Fiscal 2023 Financial and Operational Results

Fourth consecutive quarter of year-over-year same store sales and retail gross profit growth on the continued path to Positive Adjusted EBITDA and Free Cash Flow

First Quarter 2023 and Recent Highlights:

  • Q1 2023 consolidated revenue of $43.1 million and consolidated gross profit of $12.5 million
  • Achieved Retail gross margin percentage of 25.9% for the quarter, representing sequential quarterly improvements from 23.4% in Q2 2022, 24.2% in Q3 2022, and 25.4% in Q4 2022
  • Improvement in gross margin achieved by selecting the best products to our customers while taking advantage of margin opportunities through our pricing strategy, enabled by the Hifyre digital retail platform
  • Year-over-year and market outperforming same-store sales increase of 17.2% for Q1 2023
  • Digital segment revenue returned to $3.0 million for the quarter driven by growth in monthly recurring revenue and new products and services
  • Adjusted EBITDA of negative $1.8 million for Q1 2023 representing a 52.6% sequential improvement from negative $3.8 million in Q4 of 2022.
  • Entered into a Master Licensing Agreement with Alimentation Couche-Tard and exclusive first right to negotiate in new and emerging international cannabis markets
  • Launched Spark Marketplace in the App Store, a first-of-its-kind cannabis marketplace app that enables customers to purchase cannabis with unprecedented convenience
  • Exited non-core and low margin components of the Pineapple Express business while maintaining the Firebird
  • Delivery retail service, resulting in annualized cost savings of approximately $2 million
  • The Company is evaluating financing opportunities required to drive consolidation and bring the business to positive free cash flow
  • Actively evaluating retail consolidation opportunities which are accretive to the cash flow of the business

TORONTO, May 15, 2023 /CNW/ – Fire & Flower Holdings Corp. (“Fire & Flower” or the “Company”) (TSX: FAF) (OTCQX: FFLWF), today announced its financial and operational results for the fiscal  2023 first quarter ended March 31, 2023.

Our first quarter of 2023 is a clear demonstration of our continued discipline on delivering positive improvements in our overall operational results. Once again, we saw same-store sales and gross margin growth. As we look towards 2023 as a transformational year, the Company is focused on our core retail business, supported by Hifyre which enables us to deliver higher gross margin percentages and the best available products to our customers.

Stéphane Trudel, Chief Executive Officer of Fire & Flower

Our continued innovation and long-term focus is demonstrated through the recent launch of the Spark Marketplace mobile app that allows customers to shop with ease and has already produced significantly larger transaction amounts than in-person transactions.

“Consolidation opportunities in the industry that are fully accretive to our business are a key priority as we look to a long-term goal of achieving 10% market share. While keeping our eye on our long-term vision, our teams are working diligently to generate savings in SG&A expenses by simplifying our business and building value in core assets,” concluded Mr. Trudel.

Consolidated Financial Highlights

Note on Prior Year Comparative Period

As at December 31, 2022, the Company’s fiscal year was changed from a 52 or 53-week period ending the Saturday closest to January 31 to a calendar 12-month period ending December 31 to enhance comparability of its periodic financial statements with those of its peers. Accordingly, the information presented in this news release, the Interim Financial Statements, and the Management’s Discussion and Analysis reflect the results for the calendar quarter ended March 31, 2023, while the comparative figures reflect the 13-week period ended April 30, 2022 (“Q1 2022”).

Financial & Operational Highlights for the First Quarter of 2023

  • Consolidated revenue of $43.1 million for Q1 2023, representing a 5.3% increase from $40.9 million in Q1 2022. The year-over-year increase was driven by higher retail revenues for the period.
  • Consolidated gross profit of $12.5 million (28.9% of revenue) for Q1 2023, representing an increase of 2.4% from $12.2 million (29.7% of revenue) in the prior year comparative period, primarily contributed by an increase in gross profit in the Digital segment.
  • Adjusted EBITDA of negative $1.8 million for Q1 2023, an improvement of 22.5% compared with negative $2.3 million for Q1 2022.
  • Net Loss of $10.1 Million for Q1 2023 compared with net loss of $9.9 million in Q1 2022, including restructuring and impairment charge of $1.7 million and nil for prior year.
  • Cash and cash equivalents balance of $8.2 million at the end of Q1 2023.

Segment Revenue


  • Retail revenue for Q1 2023 increased 9.1% from $29.6 million in Q1 in the prior year despite having 9 fewer stores.
  • Year-over-year same-store sales increase of 17.2% compared to Q1 in the prior year.
  • Retail gross profit for Q1 2023 was $8.4 million (25.9% of revenue) compared to $8.2 million (27.8%) for Q1 in the prior year. The Retail segment continues to show steady improvement in gross margin percentage and gross profit dollars. Retail gross margin percentage has increased sequentially over the last 12 months from 23.4% in Q2 2022, 24.2% in Q3 2022, and 25.4% in Q4 2022.
  • Over 560,000 Spark Perks members made up 77% of transactions in the quarter.
  • The Company had 92 stores open and in operation at the end of March 31, 2023.

Wholesale and Logistics

  • Wholesale and Logistics revenue for Q1 2023 was $7.9 million, a decrease of $0.6 million compared to $8.5 million in Q1 2022.
  • Segment gross profit for Q1 2023 of $1.2 million, a decrease of $0.1 million compared to $1.3 million in Q1 2022.
  • Exited Pineapple non-core low margin business to business delivery services with a focus on the retail Firebird Delivery service, resulting in annualized cost savings of approximately $2 million with the anticipation of the Wholesale and Logistics segment returning to positive Adjusted EBITDA

.Hifyre™ Digital Platform

  • Digital segment revenue for Q1 of fiscal 2023 was $3.0 million compared to $2.9 million in Q1 of the prior year.
  • Gross profit margin was 95.7% for the quarter ended March 31, 2022 compared to 89.7% for Q1 of the prior year.
  • Hifyre continues to commercialize the Consumer Insights and Distribution modules to Hifyre IQ data analytics platform customers, driving additional incremental high margin revenue.

Updates Subsequent to March 31, 2023

  • On April 17, 2023, the company announced that it had signed a Master Licensing Agreement (“MLA”) with MC Cannabis Inc., an indirect wholly-owned subsidiary of ACT. The MLA gives the Company exclusive first right to negotiate entries in additional legal cannabis markets and exclusive development of co-located stores in Ontario with Fire & Flower with a commitment to open seven stores.

Adjusted EBITDA

Non-IFRS Measures – Adjusted EBITDA

“Adjusted EBITDA” is a is a Non-IFRS metric used by management that does not have any standardized meaning prescribed by IFRS and may not be fully comparable to similar measures presented by other companies. Management defines Adjusted EBITDA as the income (loss) for the period, as reported, before income taxes and other expense (income) items such as finance costs, finance income, gains and losses related to derivative liability revaluations and debt extinguishments, and adjusted for share-based compensation, depreciation and amortization, impairment expenses, restructuring charges and acquisitions, foreign exchange differences and strategic initiative professional fees.

Adjusted EBITDA for the first quarter ended March 31, 2023 was negative $1.8 million, an improvement of 22.5% compared to negative adjusted EBITDA of $2.3 million for the comparable quarter of the 2022 fiscal year.

Webcast & Conference Call

Fire & Flower will host a webcast and conference call with Stéphane Trudel, Chief Executive Officer, John Chou, Chief Financial Officer and Chris Bolivar, EVP Commercial and Growth at 8:30 a.m. EDT on May 15, 2023. The webcast will discuss Fire & Flower’s Fiscal 2023 first quarter financial and operational results and the Company’s plans for 2023.

Dial-In Information

Canada and United States dial-in number (Toll Free): +1 833 470 1428
International: +1 404 975 4839

Access code:  945842

Webcast Sign-Up

Replay Information (Available until June 5, 2023)

Canada and United States (Toll Free): 1 866 813 9403
International: +1 929 458 6194

Replay Access Code: 370356

Upon completion of the live conference call, a replay of the conference call will be accessible on Fire & Flower’s website at

Fire & Flower’s financial statements and management discussion and analysis for the period are available on Fire & Flower’s SEDAR profile at and on Fire & Flower’s website at

About Fire & Flower

Fire & Flower is a leading, technology-powered, adult-use cannabis retailer with more than 90 corporate-owned stores in its network. The Company leverages its wholly-owned technology development subsidiary, Hifyre, to continually advance its proprietary retail operations model while also providing additional independent high-margin revenue streams. Fire & Flower guides consumers through the complex world of cannabis through education-focused, best-in-class retailing while the Hifyre digital retail and analytics platform empowers retailers to optimize their connections with consumers. The Company’s leadership team combines extensive experience in the technology, logistics, cannabis and retail industries.

Through the strategic investment of Alimentation Couche-Tard Inc. (owner of Circle K convenience stores), the Company has set its sights on global expansion as new cannabis markets emerge and is poised to expand into the United States when permitted through its strategic licensing agreement with Fire & Flower U.S. Holdings upon the occurrence of certain changes to the cannabis regulatory regime.

Fire & Flower is a multi-banner cannabis retail operator that owns and operates the Fire & Flower, Friendly Stranger, Happy Dayz and Firebird Delivery brands. Fire & Flower Holdings Corp. owns all issued and outstanding shares in Fire & Flower Inc. and Friendly Stranger Holdings Corp., licensed cannabis retailers that own and operate cannabis retail stores in the provinces of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, and the Yukon territory.

To learn more about Fire & Flower, visit

Original press release

Published by NCV Newswire
NCV Newswire
The NCV Newswire by New Cannabis Ventures aims to curate high quality content and information about leading cannabis companies to help our readers filter out the noise and to stay on top of the most important cannabis business news. The NCV Newswire is hand-curated by an editor and not automated in anyway. Have a confidential news tip? Get in touch.

Get Our Sunday Newsletter