New Brunswick’s Crown-owned cannabis retailer, Cannabis NB, continues to be in the red. Even with continued promises from the company, the retailer continues to lose money rather than make any.
Within the first six months of the fiscal year, it lost nearly $12 million. It has 20 stores across the province, but all continue to stay in the red. While the second-quarter losses were $1.5 million, notably better, millions of dollars are still being lost.
Patrick Parent, the new president of Cannabis NB, has stated that the business will become profitable in the next year. Parent’s claim is that it is the same as any new business, and it needs more time to mature before it can turn a profit.
Parent’s predecessor, Brian Harriman, stated last year that the company would at least be able to break even by the end of the company’s first fiscal year. Harriman was clearly wrong.
While Parent might try to claim that the amount of money lost by the company is par for the course with new businesses, he also has stated that the company has gone through a revamp to try to speed up the profitability of the company.
The company is also still battling illegal competition that has not disappeared since cannabis was legalized. For Cannabis NB’s part, all they can do is try to speed up the process of getting a return on investment rather than continuing to hemorrhage the company’s money endlessly.3 months ago