- SLANG Worldwide Inc. reported a 14.5% YoY decline in Q2 2023 revenue to CA$8.44 million, despite a minor rise in gross margin.
- The company's cash position reduced to CA$10.07 million at the end of the quarter, after posting a negative adjusted EBITDA of CA$762,000.
SLANG Worldwide Inc. has shared its Q2 2023 financial results, presenting a less than ideal picture for the company's current financial health. The cannabis-focused consumer packaged goods company reported a troubling 14.5% Year-on-Year (YoY) decrease in revenue, reflecting a decline from CA$9.87 million in Q2 2022 to CA$8.44 million in Q2 2023.
At the same time, SLANG managed to exhibit a minor rise in the gross margin, growing from 43% in Q2 2022 to 52% in Q2 2023. While an increased gross margin usually infers healthier profitability, SLANG's figures have caused some confusion among investors as its inconsistency with the declining revenue pattern.
Another point of concern lies in the company's negative adjusted EBITDA of CA$762,000 for the quarter, an unfortunate progression from Q2 2022's negative adjusted EBITDA of CA$704,000. This figure suggests that the company currently fails to generate sufficient operating income from its business activities, making it harder for it to meet its obligations without resorting to external financing or investing activities.
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