Kiaro Reports First Quarter Financial Results

Published: June 28, 2022

Kiaro Reports First Quarter Financial Results

Kiaro Holdings Corp. has filed its unaudited condensed interim financial statements and related management’s discussion and analysis (“MD&A”) for the three months ended April 30, 2022 (“Q1 2022”). The highlights of which are presented in this news release and available on and the Company’s website All amounts, unless specified otherwise, are expressed in Canadian dollars.

Highlights Q1 FY2023

  • Revenue growth of 77% to $9.2 million from $5.2 million in Q1 prior year;
  • Retail revenue growth of 41% to $5.4 million from $3.8 million in Q1 prior year;
  • Wholesale revenue growth of 78% to $3.3 million, representing 36% of the total revenue, from $1.9 million in Q1 prior year;
  • Retention of strong retail margins at 37%, wholesale margins increased from 7% to 10% compared to Q1 in the prior year;
  • Onboarding of new talent in senior leadership roles to lead and develop the Retail and Ecommerce segments;
  • Total Assets as at April 30, 2022 of $19.9 million, compared to total assets as at April 30, 2021 of $11.4 million;
  • In Q1 FY2023, adjusted EBITDA has improved to Q4 FY2022 by $258,000;
  • eCommerce revenue growth of 26% to the prior quarter.

“We are excited to share our Q1 FY23 financial performance with shareholders which is our third straight quarter in a row of record revenue growth. This is the second quarter that included the full financial performance of our most recent acquisition Hemisphere and exceptionally strong financial performance from National Cannabis Distribution (“NCD”), the Company’s wholly owned subsidiary focused on the Saskatchewan wholesale market. The combined operations have proven to deliver record revenue growth, improve margins, and push us closer to our critical milestone of achieving positive EBITDA.” said Eleanor Lynch, the Company’s Interim Chief Executive Officer.

“NCD revenue growth of 78% to $3.3 million was an outstanding result and contributed over 36% of the revenue volume. Kiaro’s ability to attract top talent to lead our business channels has proven to be foundational in driving asset performance.  The acquired eCommerce business is fast growing and contributed revenue of $752,853 to the quarter as compared to $596,536 in Q4 of FY2022.”

“The first quarter has shown excellent growth as the Company reported revenue of $9,157,643 compared to $5,167,064 in Q1 FY2022.  Revenue growth was underpinned by volume from the acquired Hemisphere retail stores and the strong revenue results from NCD, our wholesale business”, said Eleanor Lynch, the Company’s Interim Chief Executive Officer.  “NCD revenue growth of 78% to $3.3 million was an outstanding result and contributed over 35% of the revenue volume. Kiaro’s ability to attract top talent to lead our business channels has proven to be foundational in driving asset performance.”

“I would like to thank the Kiaro team who meet challenges with enthusiasm and creativity and who continue to deliver at the highest standards.  Particularly well managed by the team has been retail gross margins, which have remained steady at 37% while the Wholesale segment is at 10%. The successful management of gross margins reflects Kiaro’s strong core competency in buying strategies that encompass category management, consumer engagement, promotional cadence and market pricing research. Kiaro gross margins are among the healthiest of the top publicly traded Canadian cannabis retailers (based on recent filings).”

For the quarter, the total operating expenses as a percentage of revenue was 44% compared to 48% for the same period in the prior year.  Efficiencies were gained by utilizing existing overheads and fixed costs to support growth in operations.

Adjusted EBITDA over the prior four quarters has fluctuated. In Q3 and Q4 FY2022, approximately $452,000 of costs supported the newly acquired companies for; additional human resources, support for the onboarding of over 70 employees, one-time professional fees, and technical integration.  In Q1 FY2023, adjusted EBITDA has improved from Q4 FY2022 by $258,000 due to easing of COVID-19 omicron restrictions in Ontario and a strong revenue growth in the Wholesale segment.

Summary of the First Quarter Financial Results



Adjusted EBITDA is a non-GAAP financial measure and is not a recognized, defined, or standardized measure under IFRS. Refer to “Cautionary Note Regarding Non-GAAP Measures.”

Continued growth and income from the Vendor Data and Education programs, which the Company has agreed to with key Licensed Producers, is expected for the remainder of the year. Ms. Lynch stated that: “The Company looks forward to strengthening performance as diversification strategies continue to deliver, external challenges ease and recently recruited leaders focus on driving revenue in key segments”.

About Kiaro
Kiaro Holdings Corp  is a trusted, diversified, omni-channel public cannabis company headquartered in Vancouver, British Columbia. Kiaro is a licensed cannabis retailer, a wholesale distributor, and an eCommerce retailer of vaporizers and accessories. Kiaro is dedicated to introducing new and experienced consumers to a lifelong exploration of cannabis.  Closely connected to the communities in which they operate and trading under the Kiaro and Hemisphere Brands, Kiaro has 17 professionally operated, best in class retail locations in British ColumbiaOntario and Saskatchewan. For more information about the Company, including the most recent analyst report, please visit