The company’s bottom line took a significant hit from the impairment charge tied to its cannabis-operations segment, which amplified the operating loss to C$48.3 million compared to C$11.1 million in the same period last year. Despite the headline figure, management pointed to a recovery in underlying profitability, noting that when stripping out restructuring costs and the impairment, the company achieved an adjusted operating income of C$5.2 million.

Top-line growth stalled as total revenue slipped 2.5% to C$238 million. Performance was uneven across business units: the cannabis-retail division managed a marginal 0.7% gain, but this was offset by a 3.3% decline in liquor-retail sales and a 28% drop in revenue from the cannabis-operations segment. The results reflect ongoing pressure from inventory challenges that surfaced earlier in the year.