Cansortium Inc Reports Growth in 2023 FY Financials
The TDR Three Key Takeaways regarding Cansortium Inc. 2023 Financials:
- Cansortium Inc posts a 9% increase in Q4 revenue, signaling robust growth.
- Florida’s potential legalization could significantly raise Cansortium’s revenue.
- Adjusted EBITDA dips due to higher operational costs for Cansortium.
Cansortium Inc (CSE: TIUM.U, CNTMF), operating under the brand name FLUENT, is a vertically integrated, multi-state cannabis operator that reported its financial results for the fourth quarter and the full year of 2023. The company achieved a record quarterly revenue of $25.5 million, marking a 9% increase year-over-year.
CEO Robert Beasley commented, “This quarter reflects our ongoing commitment to growth and operational excellence. Our expansion efforts in Florida, along with enhancements in cultivation, have led to improved THC product quality, and increases in both retail prices and average transaction sizes.”
The company plans to increase its operations in Florida and Pennsylvania and intends to open a new delivery center in Houston, Texas by early 2025, anticipating further growth by capitalizing on its early market entry.
Key financial metrics for the fourth quarter include an 11% revenue increase in Florida, totalling $21.6 million. Florida is set to vote on adult-use recreational legalization this fall, if successful in passing would significantly boost Cansortium and their revenue opportunities in this state.
Despite a rise in selling, general, and administrative expenses due to the opening of additional stores, the adjusted gross profit rose to $12.6 million, representing 49.4% of revenue. However, adjusted EBITDA decreased slightly to $6.9 million, largely due to higher operational costs.
For the year 2023, Cansortium reported an 11% increase in revenue, amounting to $97.3 million. The adjusted gross profit for the year was a notable $49.5 million, or 50.9% of revenue, highlighting a productive year despite the need for financial restatements due to some accounting errors, including misclassification of expenses and biological assets.
The restatements involved adjustments for biological asset processes and depreciation misclassification, and the removal of income from the sale of the Employee Retention Tax Credit (ERTC), which impacted net income but not adjusted EBITDA.
Operational highlights for the year include the opening of four new dispensaries in Florida, with two more inaugurated in 2024, bringing the total to 35 operational sites in the state.
Cansortium’s performance in 2023 gives a glimpse into the company’s strategic growth initiatives, placing the company in a strong position for continued expansion and success in the dynamic cannabis market. Want to keep up to date with all of TDR’s research and news, subscribe to our daily Baked In newsletter.
