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
- Revenues of $16.6 million, an
increase of $16.2 million from the
first quarter of 2021.
- Gross profit of $1.2 million, an
increase of $1.1 million from the
first quarter of 2021.
- Net loss of $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 of 2022 was $0.7
million.
- The Company's German reportable segment achieved net income of
$0.3 million.
- Cash of $5.3 million as at
March 31, 2022.
FIRST QUARTER 2022 FINANCIAL RESULTS
Revenues
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
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
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.
Liquidity
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.
CONFERENCE CALL
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.