1933 Industries Inc (CSE:TGIF) (OTCQX:TGIFF), the cannabis goods company, said its expectations for strong revenue growth and profitability for fiscal 2021 remain on track as it posted its second-quarter numbers for 2020.
In the three months to January 31, the firm revealed it reached a number of key milestones including achieving the first harvest from its new facility in Nevada and expanding cultivation and manufacturing at the California operation under a deal with Green Spectrum Trading.
It also debuted its subsidiary AMA brand of THC concentrates and those of licensing partner Blonde into the California market.
The quarter saw lower than expected revenue due to reduced sales for its cultivation arm as the group transitioned from the old facility to the new one and a slower than expected recovery of vape and distillate sales.
Thus, revenue was C$3.1 million, 20% lower than the previous quarter, and 15% down on the second quarter of fiscal 2019. The group’s net loss came in at C$6.4 million for the three months, compared to a net loss of C$2,9 million in the same quarter of 2019.
“Our focus has been to bring our assets into continuous production in order to lower our costs of production and improve our margins,” 1933’s CEO Chris Rebentisch noted in the results statement.
He added: “We have made significant progress in achieving this and we are now witnessing the results of these efforts in the first two months of our third quarter.”
1933 told investors it had implemented cost-saving measures across its operations and remains committed to reducing overhead expenses.
During and subsequent to the reporting period, the firm has reduced its workforce by 24%, decreased expenses related to operating as a public company by 68%,