Monday, June 06, 2022
GABY (GABLF)
Reports First Quarter 2022 Results
GABY Inc. is a California-focused retail consolidator and the owner of Mankind Dispensary, one of the oldest licensed dispensaries in California. Mankind is a well-known, and highly respected dispensary with deep roots in the California cannabis community operating in San Diego, California. GABY curates and sells a diverse portfolio of products, including its own proprietary brands, Lulu’s™ and Kind Republic™ through Mankind, manufactures Kind Republic, and distributes all its proprietary brands through its wholly owned subsidiary, GABY Manufacturing. A pioneer in the industry with a multi-vertical retail foundation, and a strong management team with experience in retail, consolidation, and cannabis, GABY is poised to grow its retail operations both organically and through acquisition.
Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.
Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
1Q22 Results. GABY reported first quarter revenue of $7.3 million (all figures in CAD$), up from $3.4 million reported last year, driven by the acquisition of Mankind, but down from the $8.2 million in 4Q21. We had estimated revenue of $8.5 million. Variable gross margin for the quarter improved to 47.6% compared to our 47.5% projection. GABY recorded adjusted EBITDA of $0.5 million in the quarter, compared to $0.86 million in 4Q21. Net income for the quarter totaled $1.5 million, or $0.00 per share, driven by one-time items, versus a net loss of $3.9 million, or $0.01 per share, in 4Q21.
Return to Normalcy, Challenging Market Impact Results. The sequential decline in revenue was driven by a return to post-COVID normalcy in cannabis sales and a challenging California market, as we have highlighted previously. Revenues are now back close to pre-COVID levels. …
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
