GABY Inc. Reports Solid Q3 2021 Revenue of $9.5MM with Record Gross Profit Margin of 39% – Yahoo Finance   Recently updated !


Gross Profit Improved (pro forma, ex Sonoma Pacific Distribution Inc.) to $4.3MM

Adjusted EBITDA* improved to $1.9MM

SAN DIEGO, CA / ACCESSWIRE / November 24, 2021 / GABY Inc. (“ GABY ” or the “ Company “) (CSE:GABY)(OTCQB:GABLF), a California consolidator of cannabis dispensaries and the parent company of San Diego’s Mankind Dispensary (“ Mankind Dispensary “), is pleased to announce third quarter revenue of $9.5 million and gross profit of $3.7 million compared to $806.7 thousand and $22.5 thousand, respectively, the same quarter last year.

Gross margin for the period continues to expand with a Company-record 39.3% compared to 2.8% the same quarter last year. Adjusted EBITDA from continuing operations 1 improved to $0.6 million from negative $1.3 million the same quarter last year. The improvements were attributable to the higher volumes and margins generated from the acquisition of Mankind Dispensary on April 1, 2021. In addition, the improved gross margin reflects a higher percentage sale of Mankind Dispensary’s proprietary brand, Kind Republicâ„¢, which inherently has higher margins.

For the third quarter of 2021 the net loss of $4.3 million for the quarter is $2.8 million higher than the same quarter last year primarily due to an increase in non-cash items, transaction costs and other items of expense (recovery) being $2.8 million while the improvement in Adjusted EBITDA from continuing operations of $1.9 million was offset by higher interest of $1.1 million mostly due to the Notes 1 issued on the Miramar Transaction and higher income tax expense of $0.8 million.

In August 2021, the Company terminated the operations of Sonoma Pacific Distribution (“ SPD “) including its low margin wholesale brokerage operations and consolidated all distribution efforts into a single hub in its new headquarters in San Diego.

The closure of SPD’s low margin operations resulted in lower revenue of $9.5 million in Q3

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