The Good Shroom Co Discloses Financial Results, Records Over 6x Revenue Growth From Previous Year

Published: November 28, 2022

The Good Shroom Co Discloses Financial Results, Records Over 6x Revenue Growth From Previous Year

The Good Shroom Co Inc., discusses financial & operational highlights for the fiscal year ended July 31 2022. The Company’s CEO Mr. Eric Ronsse encourages readers to read the entire release and to contact him afterwards for questions/comments or refer to the Management Discussion & Analysis.

  • The Company recorded $1,522,134 in sales revenue. Over 6X growth from the previous year.
    • The majority of this revenue was made in the last 6 months of the fiscal year from its cannabis operations and the rest from its functional mushroom beverages. This was the Company’s first fully operational year with its cannabis division beginning sales only as of December 25, 2021.
  • Gross profit margins were of $228,638.
    • Cannabis product gross margins vary depending on the product. Its important to note the Company has negotiated favourable payment terms that do not hinder cash flow. It is actively working to increase margins.
    • Non-cannabis product gross margins are higher than cannabis products. The proportion of Teonan sales to total sales in the upcoming year is expected to be more than this year.
  • No debt obligations other than $40,000 due December 2023 to the government of Canada.
  • Operating cash loss was of $777,776.

An IMPORTANT NOTE on the operating cash loss;
A significant portion of this cash loss is due to the capital investment incurred during the year to setup up its US distribution network for its mushroom beverages. As a result the Company’s products are now available through America’s 2 largest grocery distributors, KEHE and United Natural Foods, as of late Q3 fiscal year 2022. A significant portion of this investment is not re-occurring now that the setup is complete. Another portion of this loss is due to the labour cost. In June and July 2022 the Company underwent an operational restructuring whereby it reduced its labour cost by approximately 34%. The restructuring is not expected to impede the Company’s growth.

The Company’s CEO Eric Ronsse stated “With the current sales revenue we are a small company but our foundation is set and the potential to scale profitably is attainable in the medium term. I believe todays bear market will make it difficult for company’s incapable of properly managing cash flow to effectively grow and maintain shareholder value. Our financial discipline is being tested and I expect the results to cement The Good Shroom Co as a force in our industries. Fiscal year 2023 quarterly results should begin reflecting the type of company we have the potential to become.”

About the Company
MUSH operates a portfolio of brands which include traditional cannabis and beverage products. It exists to promote the use of functional ingredients such as probiotics and functional mushrooms in consumer products. Its line of Teonan beverages are first a quality and tasty beverage but also contain a dose of functional mushrooms and probiotics.

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