Alcanna Reports First Quarter 7.9% Growth in Same Store Liquor Sales and 7.5% Gain in Gross Margin Dollars From the Liquor Division
EDMONTON, Alberta, May 17, 2021 (GLOBE NEWSWIRE) -- Alcanna Inc. (the “Company” or “Alcanna”) (TSX: CLIQ) today reported its financial results for the three months ended March 31,
First Quarter Financial Results and Business Update
In Q1 2021, Alcanna’s liquor division continued the strong performance achieved in 2020. Same-store liquor sales from continuing operations rose by 7.9% and gross margin dollars from the liquor division from continuing operations increased 7.5% to $27.7 million from $25.8 million.
- The Company believes these increases are primarily a result of: (i) the change in pricing strategy that was implemented in 2019 and 2020, and has continued into 2021, which was designed to regain lost market share and grow the customer base; and (ii) shifting customer consumption habits due to more people dining and entertaining at home and continuing to stay away from on-premise liquor establishments (restaurants, bars, lounges, sports venues, etc.). The Company believes these new behaviour patterns have become entrenched in people’s lifestyle choices and will continue to some extent even after the COVID-19 pandemic subsides.
- The favourable result to last year is accentuated considering the significant increase in customer demand that was observed in the last three weeks of March 2020 as customers began stockpiling product at the start of the COVID-19 pandemic.
- Despite the fact that the Company has exited thirty-one (31) stores in Alberta during the past fifteen (15) months as a strategy to sell or close
lower-revenue/under-performing convenience-format liquor stores in Alberta, total liquor sales from continuing operations in the first quarter still rose to $123.8 million from $122.6 million in
Since the March 22, 2021 transaction which spun out Alcanna’s cannabis business into a separate publicly traded company – Nova Cannabis Inc. (“Nova”) (TSXV: NOVC) – the Company’s participation in cannabis retail is now indirect through its approximately 63% ownership of Nova.
- Nova’s strategy is to continue to be one of Canada’s largest and fastest growing cannabis retailers by delivering compelling value to cannabis
consumers – and encouraging greater migration from the illicit market. Nova’s main banner, Value Buds, offers discount prices on a wide range of cannabis products from value to premium.
- Nova currently has fifty-three (53) cannabis retail locations in Alberta, Saskatchewan and Ontario, with a further thirty (30) locations under
development/construction (Ontario: nineteen (19); Alberta: eleven (11)), the majority of which are expected to be ready to open in the second half of 2021, subject to receiving government licences.