The Company's German reportable segment achieved revenues of $16.6 million, gross profit of $1.2 million and net income of $0.3 million.
VANCOUVER, BC, May 26, 2022 /CNW/ - Franchise Global Health Inc. ("Franchise Global" or the "Company") (TSXV: FGH) (FRA: WV4A) is pleased to announce its results for the first quarter of 2022.
"The Company's German reportable segment experienced strong sales and gross profit through the first quarter of 2022," said Clifford Starke, Executive Chairman and Chief Executive Officer of Franchise Global. "Those results reflect the quality of our team in Germany and our potential as we look ahead. Franchise Global is well positioned to extend its leadership position in Germany, and continue our trajectory as one of Germany's most trusted pharmaceutical and medical cannabis companies".
FINANCIAL AND OPERATING HIGHLIGHTS
FIRST QUARTER 2022 FINANCIAL RESULTS
Revenues increased 4,050% from $0.4 million in the first quarter of 2021 to $16.6 million in the first quarter of 2022. The increase is primarily due to acquisition of Phatebo GmbH ("Phatebo"), which contributed $16.5 million revenues in the first quarter of 2022. The Company acquired 100% of Phatebo on December 31, 2021.
Gross profit for the first quarter of 2022 was $1.2 million, up $1.1 million or 1,100% from $0.1 million for the same period in the prior year.
Net loss for the first quarter of 2022 was $17.0 million. Excluding one-time listing expenses of $15.6 million, share-based compensation of $0.4 million, and impairment expense of $0.3 million, net loss for the first quarter was $0.7 million. Excluding corporate costs and over reportable segments, the Company's German reportable segment achieved net income of $0.3 million.
As at March 31, 2022, the company has cash of $5.3 million as well as $2.1 million (?1.5 million) in undrawn capacity on Phatebo's lines of credit.
A conference call hosted by senior management will be held on Monday, May 30, 2022 at 9:00 AM EST. Please join the conference call approximately ten minutes prior to the scheduled start time.
Dial-in details for the conference call are as follows:
Toronto local or International: 1-416-915-3239
Toll-Free (North America): 1-800-319-4610
About Franchise Global
Franchise Global, through its subsidiaries, is a multi-national operator in the medical cannabis and pharmaceutical industries, with principal operations in Germany and with operations, assets, strategic partnerships and investments internationally. Franchise Global's business objective is to develop a fully?integrated, leading European medical cannabis business, with the goal of providing high-quality pharmaceutical grade medical cannabis to distribution partners and, ultimately, to patients, at competitive prices. For more information please visit www.franchiseglobalhealth.com.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS PRESS RELEASE.
Cautionary Statement Regarding Forward-Looking Information
This news release contains "forward-looking information" within the meaning of applicable securities laws, including without limitation statements regarding the business of Franchise Global and its prospects. Often, but not always, forward-looking information can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or statements formed in the future tense or indicating that certain actions, events or results "may", "could", "would", "might" or "will" (or other variations of the foregoing) be taken, occur, be achieved, or come to pass. Forward-looking information is based on management's current expectations, estimates, beliefs and/or opinions and is based on information currently available to them (including information obtained from third party industry analysts and other third-party sources) and on assumptions they believe not to be unreasonable in light of all of the circumstances.
By its nature, forward-looking information is subject to both known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Readers are cautioned to not place undue reliance on forward-looking information. Please refer to the filing statement of the Company available on the Company's SEDAR profile at www.sedar.com for more details on the risks and uncertainties faced by Franchise Global. Any and all forward-looking information contained in this news release is expressly qualified by this cautionary statement, and the Company undertakes no obligation, and does not intend, to update any forward-looking information contained in this news release, whether as a result of new information, future developments, or otherwise, except as otherwise required by applicable law.
SOURCE Franchise Global Health Inc.
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