Fire & Flower Announces Fiscal Second Quarter 2021 Financial and Operational Results

  • Quarterly revenue increased 51% year-over-year to $43.3 million
  • Fifth Consecutive Quarter of Positive Adjusted EBITDA of $3.1 million
  • Hifyre™ Digital Retail and Analytics Platform generated $3.7 million in revenue for the quarter, an increase of 293% year-over-year

TORONTO, Sept. 14, 2021 /CNW/ – Fire & Flower Holdings Corp. (“Fire & Flower” or the “Company”) (TSX: FAF   OTCQX: FFLWF), today announced its financial and operational results for the fiscal second quarter ended July 31, 2021.

Trevor Fencott, Chief Executive Officer of Fire & Flower commented, “This quarter we continued to execute on our overall business strategy as our revenues increased 51% year-over-year to $43.3 million. Also, we successfully laid the foundation of our expanded digital strategy in the second quarter as we strengthened key partnerships and began recognizing the full value of our Hifyre digital platform. Our unique capability to apply today’s most advanced technology for collecting consumer buying behaviors to deliver the strongest e-commerce experience is an invaluable asset in our industry. We are extremely pleased to be entering a new stage of our growth as we continue to leverage and monetize our tech-enabled platform to expand upon our leadership position and enter new growth markets utilizing an asset-light, highly scalable e-commerce model.”

Consolidated Financial Highlights

Financial Highlights for the Second Quarter period ended July 31, 2021

  • Total revenue of $43.3 million compared to revenue of $28.6 million for the second quarter of 2020, an increase of 51.4% 
  • Total gross profit $16.2 million, or 37.3% of revenue, compared to total gross profit of $10.0 million, or 34.8% of revenues in the second quarter of 2020 
  • Fifth consecutive quarter of positive Adjusted EBITDA of $3.1 million compared to positive Adjusted EBITDA of $1.1 million for the second quarter of 2020, representing an increase of 176% year over year 
  • Total debt at July 31, 2021 was $3.8 million
  • Cash and short-term investment balances of $29.3 million

“As our financial results demonstrate, our Hifyre business segment is growing at a rate significantly greater than past quarters and is now driving new opporutnities for total revenue growth and stronger EBITDA. Our growth is focused on building upon these opportunities, white-labelling our e-commerce platform to drive additional high-margin revenue streams and capture new customers through our announced acquisitions of Wikileaf and PotGuide. We continue to successfully execute an e-commerce model unlike any of our competitors as we drive our leadership position in the global cannabis retail industry,” concluded Fencott.

Segment Revenue


  • Retail revenue increased by 36.3% year-over-year to $31.8 million
  • Gross profit margin of 34.1% for the thirteen weeks ended July 31, 2021
  • Adjusted EBITDA declined to $0.4 million from $2.5 million in the prior year 
  • Adjusted EBITDA margin of 1% for the thirteen weeks ended July 31, 2021
  • Same-store sales decreased 14% for forty-eight (48) stores in operation during the comparable period in Q2 2021 due to a surge in newly licensed retail cannabis stores in Ontario, from 665 at May 1, 2021 to 981 at July 31, 2021
  • Expanded the Company’s retail network with the opening of 7 new stores in Canada, bringing total stores to 91 
  • In early June 2021, the Ontario cannabis market opened up from lockdown due to COVID-19, allowing for foot traffic into all Fire & Flower retail stores


  • Wholesale revenue increased by 81.3% year-over-year to $7.8 million
  • Gross profit margin of 21.1% for the thirteen weeks ended July 31, 2021
  • Adjusted EBITDA increased by 136.3% year-over-year to $1.3 million
  • Adjusted EBITDA margin of 17.0% for the thirteen weeks ended July 31, 2021

Digital Platform 

  • Hifyre revenue increased 292.6% year-over-year to $3.7 million
  • Adjusted EBITDA increased to $2.2 milion from $(0.1) million in the prior year 
  • Adjusted EBITDA margin of 60.2% for the thirteen weeks ended July 31, 2021


  • Appointed Matthew Hollingshead, President of Hifyre, to Chief Innovation Officer 
  • Further strengthened strategic partnership with Alimentation Couche-Tard Inc. as they exercised warrants increasing their total ownership stake in Fire & Flower to 22.4% 
  • Entered partnership with Humble & Fume to offer an expanded catalogue of their portfolio of products to Fire & Flower customers across North America both online and in-store.

Subsequent Operational Highlights post July 31, 2021

  • Launched expanded digital strategy with the proposed acquisition of assets of Wikileaf Techologies Inc. 
  • Entered the California market through strategic licensing agreement with American Acres (now called Fire & Flower U.S. Holdings) and opening of a Palm Springs branded Fire & Flower store 
  • Strengthened asset-light, expanded digital strategy with the proposed acquisition of PotGuide 
  • Spark Perks members grew from 45,000 in Q2 2020 to over 310,000 across Fire & Flower’s entire retail network in Q2 2021 
  • Continued with its Nasdaq application and has targeted the fourth quarter 2021 for its U.S. listing

Non-IFRS Measures – Adjusted EBITDA “Adjusted EBITDA” is a Non-IFRS metric used by management that does not have any standardized meaning prescribed by IFRS and may not be fully comparable to similar measures by presented by other companies. Management defines the Adjusted EBITDA as the Income (loss) for the period, as reported, before accretion and interest, deferred tax, and adjusted for share-based compensation expense, depreciation and amortization, gains and losses related to derivative liability revaluations and debt extinguishments, professional fees associated with financing and acquisition and business development activities, impairment charges, and restructuring charges. 

Adjusted EBITDA has been calculated differently than in periods prior to Q1 2021, where the Company previously included lease liability cash payments as disclosed in accordance with IFRS 16 “Leases” accounting standards. The updated measure reflects the Company’s new approach to analyzing the consolidated operating performance across the business lines. The Company believes the updated definition is a more useful measure to assess performance as it provides meaningful operating results and facilitates period-to-period operating comparisons. As other companies may calculate this non-IFRS measure differently than the Company, this metric may not be comparable to similarly titled measures reported by other companies. We caution readers that Adjusted EBITDA should not be substituted for determining net income (loss) as an indicator of operating results, or as a substitute for cash flows from operating activities. A reconciliation of net income (loss) to Adjusted EBITDA is presented below.

Adjusted EBITDA for the fiscal second quarter ended July 31, 2021 was $3.1 million compared to Adjusted EBITDA of $1.1 million for the thirteen weeks ended August 1, 2020.

Lease liability payments during the thirteen and twenty-six weeks ended July 31, 2021 were $2.4 million and $4.6 million, respectively (August 1, 2020: $1.4 million and $2.7 million, respectively ) 

Webcast & Conference Call

Fire & Flower will host a webcast and conference call with Trevor Fencott, Chief Executive Officer, and Judy Adam, Chief Financial Officer at 8:30 a.m. EDT on September 14, 2021. The webcast will discuss Fire & Flower’s second quarter 2021 financial and operational results.

Webcast URL 

Dial-In Information
Toll-Free Dial-In Number: 1-844-200-6205
Participant Access Code:  407169

Replay Information (Available until October 5, 2021)
Toll-Free Dial-In Number: 1 866 813 9403
Access Code: 151302

Upon completion of the live conference call, a replay of the conference call will be accessible on Fire & Flower’s website at

Fire & Flower’s financial statements and management discussion and analysis for the period are available on Fire & Flower’s SEDAR profile at and on Fire & Flower’s website at

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