Jushi Holdings: Q4 and Annual 2023 Financial Highlights

The TDR Three Key Takeaways for Jushi Earnings:

1. Jushi maintains their gross profit margin in both Q4 and FY 2023.
2. Significant reduction in net loss from Q4 2022 to Q4 2023.
3. Introduction of 175 new SKUs bolstering Q4 product offerings.

Jushi Holdings (CSE: JUSH, OTCQX: JUSHF), headquartered in Boca Raton, Florida, reported its financial results for the fourth quarter (Q4 2023) and the full year ended December 31, 2023 (FY 2023). The reports highlight a mix of achievements and challenges faced by the company throughout the year. 

Jushi’s Q4 2023 revenue stood at $67.8 million,  a decline from the previous year’s Q4 revenue of $76.8 million. The year-over-year revenue drop primarily resulted from competitive pressures and pricing challenges in key markets such as Nevada and Pennsylvania. Despite this decline, Jushi managed to maintain a gross profit margin of 40.2% in Q4 2023, an increase from the previous year, showcasing its ability to control costs and improve operational efficiencies.

The company reported a net loss of $18.0 million in Q4 2023, a significant improvement from a net loss of $139.9 million in Q4 2022. This reduction in net loss is attributable to decreased asset impairment charges and a concerted effort to reduce operational costs. Adjusted EBITDA for Q4 2023 stood at $11.3 million, with an Adjusted EBITDA margin of 16.7%, reflecting improved operational performance and financial health.

For FY 2023, Jushi reported total revenue of $269.4 million, a decrease from $284.3 million in FY 2022. The full-year gross profit was reported at $116.2 million, representing an increase of 21.7% year-over-year. This improvement in gross profit is from Jushi’s focus on operational efficiencies and cost management. The company ended the year with a net loss of $65.1 million, an improvement from a net loss of $202.3 million in the previous year, this was from the company’s ability to manage its expenses more effectively.

A notable achievement in Q4 2023 was the significant increase in Jushi-branded product sales, which accounted for approximately 53.4% of total retail revenue. The company also introduced 175 new unique SKUs during the quarter, demonstrating its commitment to enhancing its product and brand offerings. This strategic focus on product development and brand strength is crucial for sustaining growth and competitiveness in the rapidly evolving cannabis market.

Jim Cacioppo, Chief Executive Officer, Chairman, and Founder of Jushi, emphasized the company’s success in increasing margins through operational efficiencies and reducing operating expenses. Cacioppo highlighted the company’s focus on de-levering its balance sheet and optimizing its grower processor facilities as key strategies for future profitability and growth.

Looking ahead, Jushi’s management remains optimistic about strengthening profitability through continued operational optimizations and leveraging proprietary retail data and consumer insights for product development. The company’s focus is on expanding its Jushi-branded product sales and managing its debt levels while looking for opportunities within the cannabis industry. Want to keep up to date with all of TDR’s research and news, subscribe to our daily Baked In newsletter.