Jushi Holdings Reports Q1 2024 Financial Results

The TDR Three Key Takeaways regarding Jushi Holdings and Q1 2024 Financial Results:

1. Jushi reports a revenue dip to $65.5 million due to tough markets in Illinois.
2. Jushi’s gross profit margin improves significantly to 49.4% in Q1 2024.
3. Jushi is optimistic about future growth despite current market challenges.

On May 9, 2024, Jushi Holdings Inc., (CSE:JUSH, OTCQX:JUSHF) a multi-state cannabis operator based in Boca Raton, Florida, announced its financial results for the first quarter ending March 31, 2024. The company reported net revenue of $65.5 million for Q1 2024, showing a decrease of 6.3% from $69.9 million in the first quarter of 2023. This decline was primarily due to reduced sales in Illinois and Pennsylvania, driven by increased competition and market saturation, as well as price compression in Nevada.

Despite the drop in revenue, Jushi Holdings saw a significant increase in gross profit, which reached $32.3 million, translating to a gross margin of 49.4%. This represents an improvement from $29.9 million and a 42.9% margin in Q1 2023. The increase in gross profit margin was largely due to cost optimization measures within their grower-processor operations.

However, the net loss for the company widened to $18.4 million from $12.4 million year-over-year, influenced by increased other expenses totaling $12.7 million, and income tax expenses of $9.7 million. On a brighter note, Adjusted EBITDA saw substantial improvement, increasing by 75.6% to $13.3 million from $7.6 million in the previous year, with the EBITDA margin expanding to 20.4%.

During the quarter, Jushi continued to expand its product portfolio, introducing 443 new unique SKUs, a more than 153% increase compared to Q4 2023. The company also advanced its retail footprint by opening the 17th Beyond Hello™ dispensary in Pennsylvania, located in Mount Pocono.

Jushi Holdings’ CEO, Jim Cacioppo, commented on the company’s strategic direction, stating, “Our organization-wide commitment to delivering margin improvement is continuing to have a strong impact on our profitability.” He emphasized the significant improvement in gross profit margin and the effective execution of their operational improvement plans.

In line with its strategic financial management, the company continued its debt reduction efforts, making a scheduled payment of approximately $2.4 million on its first lien financing and refinancing approximately $9.9 million of unsecured debt. With the appointment of Todd West as Chief Operating Officer, Jushi Holdings is poised to further accelerate its operational efficiencies. Cacioppo added, “The recent appointment of Todd West as Chief Operating Officer will enable us to further accelerate optimization initiatives across the organization and enhance organization-wide collaboration.”Looking ahead, the company is optimistic about leveraging regulatory developments and continuing to enhance its operational efficiencies to bolster profitability and market position.  We will continue to monitor the company’s developments and provide updates on its ongoing progress. Want to keep up to date with all of TDR’s research and news, subscribe to our daily Baked In newsletter.