Aegis Brands Inc. reported financial results for the fourth quarter and fiscal year ended December 26, 2020. Concurrently with filing its annual financial statements, the Company has withdrawn its previously announced application for a management cease trade order.
Highlights
- Aegis entered a definitive agreement to sell Second Cup for $14 million plus earn out.
- Consolidated Net Loss including Second Cup for Q4 and fiscal year was $14.0 million and $19.6 million respectively compared with $3.6 million and $4.7 million for last year.
- Q4 and fiscal year Net Loss from continuing operations, excluding Second Cup, was $6.1 million and $7.7 million respectively compared with $1.1 million and $1.9 million last year, in large part due to non-cash impairment charges of $3.6 million as a result of the COVID-19 pandemic.
- Bridgehead’s Same Store Sales were (38.52%) when compared with (43.97%) in the third quarter of 2020.
- Hemisphere’s revenue increased by 38% from Q3 to Q4.
Hemisphere Cannabis Co.
In the fourth quarter the Hemisphere brand opened two new downtown locations in Toronto and Ottawa. As a result of this increase in store count, Hemisphere’s sales rose by 38% when compared to Q3. Despite the additional competition and lockdown measures impacting its stores, Hemisphere’s gross margin in the fourth quarter remained strong at 33.2%.
The brand continues to focus on scaling and building brand awareness in order to compete, with plans to open three additional stores before the end of the second quarter. Two additional stores are slated to open later in 2021. Knowing scale remains imperative in this market, Aegis is actively considering options for consolidation.
About Aegis Brands Inc.
Aegis Brands Inc.’s vision is to build a portfolio of amazing brands that can grow and flourish with access to resources and expertise. The Company is committed to letting each company under the Aegis Brands umbrella operate as an independent brand, and to provide shared expertise – and shared services – to help them thrive. The Company now owns and operates Bridgehead and Hemisphere Cannabis Co. as well as the Second Cup Coffee Co. specialty coffee business which is currently under the sale process to Foodtastic. For more information, please visit www.aegisbrands.ca or find the Company on Facebook and Twitter.
