Halo Collective Inc. (OTCMKTS: HCANF) has announced Q2 2021 operational and financial results for the period ended June 30, 2021.
Halo reported revenue of $9.1 million
The company reported 74.3% YoY revenue growth to $9.1 million compared to Q2 2020’s revenue of $5.2 million. The current quarter’s revenue includes 4.3 million grams of marijuana product sold to dispensaries in California and Oregon, representing a 302% YoY increase. Halo reported organic revenue growth of 36% with a gross margin of 24.1% or gross profit of $2.2 million, a 19.6% gross margin increase from Q2 2020. The company reported an adjusted gross profit of $2.5 million compared to £1.2 million a year ago.
Halo co-founder and CEO said, “Halo delivered its highest gross profit adjusted for fair value gains or losses in biological assets and impairments since 2019 due to continued strong revenue growth and revenue optimization efforts to drive higher-quality sale. We continue to generate strong organic and inorganic growth due to the popularity of our premium products, improved brand recognition and enhanced operational efficiency. Our operating expenses are significantly elevated as we support both the Halo Tek and Akanda operations over the next few months, but we anticipate significant decreases in overheads by the end of the year, helping to position the Company to achieve positive EBITDA in Q4 2021.”
Halo to spinoff Halo Tek
Sidhu explained that the expected Halo Tek spinoff and reorganization of its international assets into Akanda are critical strategic actions Halo is taking to enhance its strategic focus in the US as an MSO focusing on California and Oregon markets.
CFO and co-founder Philio Van Den Berg said, “The Q2 results demonstrate that we are on track toward our goal of profitability. We are reducing our full-year 2021 revenue guidance from $75 million to $65 million. Our dispensaries should be online over the next 120 days, contributing at a full run rate by year-end.”