AYR Wellness’s Full Year and Q4 2023 Financial Results

The TDR Three Key Takeaways for AYR:

  1. FY 2023 revenue increased 10%, highlighting AYR Wellness’s growth.
  2. Adjusted EBITDA up 51% in FY 2023, reaching $114 million.
  3. Q4 saw modest revenue growth with a focus on expanding market presence.

AYR Wellness Inc. (CSE: AYR.A, OTCQX: AYRWF), based in Miami, reported its fourth quarter and full-year financial results for the period ending December 31, 2023, today. The company, a vertically integrated U.S. multi-state cannabis operator, reported a 10% increase in its FY 2023 revenue, totaling $463.6 million, excluding discontinued operations. Its GAAP loss from operations showed significant improvement, narrowing to $37.2 million. A notable highlight was the 51% surge in its adjusted EBITDA, which reached $114 million, alongside an expanded EBITDA margin of 25%.

David Goubert, AYR’s President & CEO, remarked on the transformative year, emphasizing revenue growth, profitability enhancement, and balance sheet strengthening. Goubert pointed out the strategic positioning for industry changes, including the transition of dispensaries to adult-use sales. AYR completed financial restructuring in early 2024, deferring or retiring nearly $400 million in debt, thus helping its financial outlook.

AYR’s operational progress  in Q4 2023 included opening new dispensaries in Florida and Ohio, which is part of its broader strategy to capitalize on market transitions to adult-use cannabis. The company’s corporate actions in February 2024, including the plan of arrangement to extend debt maturities and the capital raise, further underscore its strengthened financial position.

A comparison of the fourth quarter year-over-year financials reveals a modest revenue increase of 0.4%, with adjusted EBITDA rising by 23.1% to $29.8 million. The adjusted EBITDA margin improved significantly, reflecting AYR’s ongoing efforts to enhance profitability and operational efficiency. These achievements are part of AYR’s broader strategy to optimize its cost structure and improve product quality and brand portfolio.

The full-year 2023 performance compared to the previous year helps investors compare the company’s results. Revenue saw a 10% increase, with gross profit and adjusted gross profit rising by 15.7% and 12.9%, respectively. The improvement in operating loss and a 51.2% increase in adjusted EBITDA highlight AYR’s show that the previous years strategic initiatives are working.

Looking ahead, AYR anticipates Q1 2024 revenue to show flat to modest growth compared to Q4 2023, with continued achievement of the 25% adjusted EBITDA margin target. The company expects improvements from its cultivation efforts in Florida and increased wholesale revenues, signaling a positive outlook for revenue, adjusted EBITDA, and operating cash flow growth throughout the year.

AYR Wellness Inc.’s financial results for the fourth quarter and full year of 2023 show operational and financial improvements, despite the challenges faced. The company’s focus on expanding its market presence, improving its balance sheet, and optimizing operations positions should help it further grow its revenue in 2024. Want to keep up to date with all of TDR’s research, subscribe to our daily Baked In newsletter.   

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