Adam Jackson
SLANG Worldwide Inc. (CSE: SLNG) (OTCQB: SLGWF) reported a rise in its revenue and gross profit as the company considers potential sale offers, driven in part by a thriving market in Vermont.
For the third quarter ending Sept. 30, Slang posted a revenue of $9.10 million, up from $8.17 million in the same period the previous year. The rise in revenue is largely due to higher sales in core markets and a growing e-commerce presence, although gains were partially offset by decreases in distribution and emerging market sales.
A significant revenue increase in Vermont, attributed to a shift from retail to wholesale operations, was a key factor in the company’s performance. On the other hand, sales in Colorado during the period continued to offset those gains by $630,000, according to filings.
Net loss came out to a loss of $5.1 million during the third quarter, versus a loss of $6.3 million in the same period last year, according to filings.
In a statement, CEO John Moynan emphasized the company’s adaptability in various market conditions. However, he did not delve into specific challenges faced in different regions or how these might impact future operations.
Gross profit for Slang rose to $4.9 million with a 53% gross margin, compared to $3.6 million and a 44% gross margin in the third quarter of 2022.
The company also saw significant improvement in its adjusted EBITDA, reporting a loss of $310,000 during the period, versus an adjusted EBITDA loss of $1.24 million in the same quarter last year. The improvement is primarily due to a $1.15 million increase in gross profit, offset by a $220,000 increase in operating expenses.
Slang’s cash position as of Sept. 30 was reported at $10.82 million, a slight decrease from the end of 2022 but an improvement from June 2023.
Slang earlier this month tapped PGP Capital Advisors LLC to help potentially restructure or sell the company. The company also disclosed the issuance of common shares related to the employment agreements of its CFO and CEO.
