Hill Street Beverage Company Inc (CVE:BEER) released its fiscal first quarter 2021 results on Tuesday that highlighted the company’s steady performance in the face of the coronavirus pandemic.
In a statement, CEO Terry Donnelly told investors that the alcohol-free beverage company made good progress throughout the quarter, despite facing a number of supply chain challenges caused by COVID-related disruptions.
READ: Hill Street Beverage acquires global rights to Lexaria Bioscience's THC assets for $3.85M; completes private placement
"Hill Street executed very well in the face of the very significant issues we were facing in our supply chain, including an inability to acquire inventory due to pandemic related challenges with various suppliers we rely on, as well as significant delays in licensing the premises and commissioning of the manufacturing equipment of our cannabis copackers,” Donnelly said.
“These significant challenges were met head on by our team, who made difficult but prudent decisions to conserve cash, focus on the sales channels and products that deliver the highest margins, and keep making progress toward the launch of new cannabis product portfolio.”
The company's focus on cash control resulted in a 55% reduction in expenses, according to a release.
During the quarter, the Toronto-based company signed a milestone deal with Lexaria Bioscience to acquire the latter’s THC assets, which will propel Hill Street’s plans to launch Cannabis 2.0 related products.
The firm also struck a manufacturing deal with Molecule Inc ahead of a planned launch of its (V)ia SPRIZA cannabis-infused beverages brand in December.
For the quarter ended September 30, 2020, Hill Street reported revenue of C$274,712, down from $329,000 in 1Q 2020, and significantly narrowed its net loss to C$476,000 – a 69% improvement on the $1.5 million figure in the year ago quarter.
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