Glass House Brands Posts Q3 2023 Financial Results; Revenues Increase 71% YoY
Glass House Brands Inc. GLAS GLASF announced its financial results for the third quarter ending September 30, 2023.
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“The third quarter of 2023 was another highly successful quarter for the Company as we achieved record levels of revenue and positive Adjusted EBITDA for the second consecutive quarter,” stated Kyle Kazan, co-founder, chairman and CEO. “We achieved record revenue of $48 million, largely driven by an increase in production, which grew 36% from Q3 2022 to over 101,000 pounds. This is quite impressive given we were able to accomplish this with the same cultivation capacity we had from last year.”
Third Quarter 2023 Highlights
- Net Sales: $48.2 million, a 71% YoY increase, and an 8% sequential rise from Q2 2023
- Gross Profit: $26.0 million, compared to $8.7 million in Q3 2022 and $24.4 million in Q2 2023
- Gross Margin: 54%, up from 31% in Q3 2022 and 55% in Q2 2023
- Adjusted EBITDA: $10.7 million, compared to $(2.7) million in Q3 2022 and $9.5 million in Q2 2023; Cumulative 1-3Q 2023 Adjusted EBITDA reached $20.1 million, compared to $(18.8) million last year
- Operating Cash Flow: $9.1 million, compared to $(8.2) million in Q3 2022 and $8.3 million in Q2 2023; cumulative 1-3Q 2023 operating cash flow reached $21.8 million, compared to $(31.5) million last year
Moreover, the cost per equivalent dry pound of production was $118, a 12% decrease YoY and a 15% sequential decline versus Q2 2023. Equivalent dry pound production: 101,825 pounds, up 36% YoY. Cash Balance: $37.9 million at quarter-end, up 67% from Q2 2023.
“On the production side, we achieved a record low of $118 per pound this quarter, and this accomplishment has given us even greater confidence that we are well on our way to achieving our goal of less than $100 per pound,” said Kazan. “Our outlook continues to be bright as we build upon the successes we have already achieved through the first three quarters of 2023.”
Third Quarter 2023 Operational Highlights
- Glass House Brands attended the ATB Capital Markets 2023 Life Sciences Investor Conference on September 20th
- It participated in the AGP Virtual Consumer Cannabis Conference on October 4
- The company announced the appointment of John A. Pérez to its Board of Directors
- Element 7, APB, and GH Group entered into a Settlement and General Mutual Release Agreement
- Glass House Brands announced the appointment of Yelena Katchko to its board of directors
