Choom Announces Second Quarter Revenue of $4.21 Million, Down 13% from Prior Quarter – CHOOM HLDGS INC by Choom Hldgs Inc. (CHOOF)

Choom Holdings Inc. (CSE:CHOO) (OTCQB:CHOOF) published its financial and operating results for the second quarter of 2022ending December 31, 2021.

The Vancouver, BC-based company noted that 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 also the store staff. The retail company is proud of how its team responded to these external factors allowing Choom to maintain business continuity in a challenging environment.

Q2 2022 Financial Highlights

  • Revenues of $4.21 million versus $4.84 million in Q1 2022

  • Gross margin of 37.53% vs. 37.17% in Q1 2022

  • Selling, general and administrative expenses of $2.08 million compared to $2.16 million in Q1 2022

The macro market beyond the pandemic remains extremely competitive for two main reasons. First, the opening of new cannabis retail stores continues to outpace market growth, particularly in Ontario where there are nearly 1,400 cannabis retail licenses in circulation, up from 65 in 2020. Second , low-cost retailers continue to focus on buying market share, it was mainly the Alberta market.

According to Choom, the cannabis retail industry remains fragmented, with no retailer achieving a market share above 5%, paving the way for consolidation within the industry. Choom is and will remain very active in the field of mergers and acquisitions over the next few months.

Second Quarter Operational Highlights

  • Vancouver locations continue to outperform, with sales up 140% from Q2 2021.

  • The Hamilton store opened during the quarter

  • Margins increased by 1.17% compared to Q2 2021