CordovaCann says Star Buds stores generated ‘strong perfomance’ to start 2023

CordovaCann provides an update on its Star Buds Cannabis Co. retail operations in Canada. Star Buds Cannabis Co. generated strong performance to start 2023. The stores continue to grow despite a difficult economic environment, due to increasing market share, strong cost controls, diverse product assortment and excellent customer service. Gross margin per store also continues to expand and management remains focused on increasing store profitability. The Star Buds Cannabis Co. chain generated revenues of $1.12 million, $1.07 million, and $1.15 million in January, February, and March, respectively. The stores posted a total gross margin of 25.9% in January, 26.4% in February, and 26.0% in March. The platform grew revenues 8.8% in comparison to the same period from the prior year, with the March quarter being the seasonally weakest quarter of the year. Management expects Star Buds Cannabis Co. to continue to benefit from closures of competing stores, industry consolidation, and increased customer awareness. The Company is also working to expand the Star Buds Cannabis Co. platform across Canada through both organic store growth and acquisitions, and will share this expansion plan soon.