Lifeist Reports Third Quarter 2023 Financial Results

Focus on efficiencies and delivering high-quality products drives improvements in gross margins and cost reductions

TORONTO, Oct. 27, 2023 (GLOBE NEWSWIRE) -- Lifeist Wellness Inc. (“Lifeist” or the “Company”) (TSXV: LFST) (FRANKFURT: M5B) (OTCMKTS: LFSWF), a health-tech company that leverages advancements in science and technology to build breakthrough companies that transform human wellness, today reported its financial results for the three months ended August 31, 2023 (“Q3 2023”) compared to the same period last year (“Q3 2022”). All financial figures are in Canadian dollars unless otherwise indicated.

Third Quarter

• Net revenue of $4.8 million in Q3 2023 compared to $6.8 million in Q3 2022.
• The strategic focus on high margin activities and operational efficiency continues to pay off with gross margins improving to 30% in Q3 2023 compared to 20% in Q3 2022.
• Gross profit before inventory adjustment increased slightly to $1.4 million.
• Operating costs and professional fees drop 21.4% to $3.1 million in Q3 2023 compared to $3.8 million in Q3 2022.  

"Our steadfast commitment to transforming Lifeist into a diversified wellness company with high-margin business units remains on track," said Meni Morim, CEO of Lifeist. "Our third-quarter performance, while presenting unique challenges, underscores our unwavering dedication to continuous improvement and efficiency. We have shifted our primary focus to gross profit enhancement, rather than simply revenue growth, and together with cost efficiency measures in Q3 2023, such actions yielded promising results. With this strategic shift in focus, we will be better positioned to weather industry fluctuations, foster profitability, and deliver sustainable growth. We look forward to communicating our progress within our business units as we continue to navigate the challenging path forward."

Financial Summary

Net revenue was $4.8 million in Q3 2023 compared to $6.8 million in Q3 2022 due to supply chain challenges impacting CannMart’s cannabis revenue in Q3 2023, as compared to Q3 2022.

Gross profit before inventory adjustment increased 2.9% to $1.4 million in Q3 2023 versus the same period last year, with margins expanding to 30% in Q3 2023 from 20% in Q2 2023. The increase in margins in Q3 2023 as compared to Q3 2022 reflects the success of the Company’s strategic focus on individual segments, geographies, and products, as well as a continuous effort to improve production efficiencies across all segments.