SLANG Worldwide Inc. (CSE:SLNG) (OTCQB:SLGWF) reported its financial results on Tuesday for the second quarter, three months ended June 30, 2024.
The Toronto-based consumer packaged goods company, reported a 26% year-over-year decrease in revenue to CA$6.28 million ($4.7 million) in the second quarter.
SLANG attributed the downward trend to a CA$1.78 million drop in core market sales, a decrease of CA$0.20 million in emerging market sales, a decrease of CA$0.09 million in e-commerce sales and a decrease of CA$0.09 million in distribution sales. Within the core market segment, the company experienced a reduction of CA$0.51 million and CA$1.27 million in sales in Colorado and Vermont, respectively.
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"We continue to see increased competitive headwinds in our Core and Emerging Markets, which have led to a decline in sales revenue, gross profit and Adjusted EBITDA," said John Moynan, the company's CEO. "The reduction in retail sales, as well as limited cash available for general working purposes and rising public company corporate overhead costs, negatively impacted the Company's available cash from operations. As a result of these factors, SLANG continues to work with PGP Capital Advisors as our financial advisor as we pursue a full range of strategic and financial alternatives."
Q2 2024 Financial Highlights
- Gross profit was CA$2.69 million (43% gross margin) compared with CA$4.35 million (52% gross margin) in the second quarter of fiscal 2023, representing a 38% decrease in gross profit and a 9% decrease in gross margin year-over-year.
- Operating expenses amounted to CA$5.47 million, compared with CA$6.24 million in the prior year's period and CA$5.54 million in the three months ended March 31, 2024, representing a 12% decrease year-over-year and a 1% decrease quarter-over-quarter.
- Total comprehensive loss was CA$11.5 million, compared with CA$5.16 million in the prior year's period, representing a 123% increase year-over-year.
- Adjusted EBITDA came in negative at CA$1.42 million, compared with a negative adjusted EBITDA of CA$0.76 million in the corresponding period of 2023.
- CA$ 6.75 million in cash and restricted cash on June 30, 2024, compared to CA$8.32 million on March 31, 2024 and CA$9.04 million on Dec. 31, 2023.
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SLGWF Price Action
SLANG's shares traded 20% lower at $0.008 per share after the market close on Tuesday afternoon.
