Planet 13 Holdings Reports Q1 2024 Financial Results
The TDR Three Key Takeaways regarding Planet 13 Holdings and Financial Results:
- Despite a revenue dip, Planet 13 Holdings shows an improved gross margin.
- Planet 13 Holdings shows significant improvements in net loss that reflect effective management.
- New growth plans set as Planet 13 Holdings prepares for market expansion.
Planet 13 Holdings Inc. (CSE: PLTH; OTCQX: PLNH), a company in the vertically integrated cannabis industry, disclosed its financial results for the first quarter of 2024. Despite facing operational challenges, the company’s strategic initiatives show a proactive approach toward leveraging regulatory changes in the cannabis sector.
For the quarter ending March 31, 2024, Planet 13 Holdings reported revenues of $22.9 million, reflecting an 8.2% decrease from $24.9 million in the same quarter of the previous year. This decline primarily resulted from lower sales at their SuperStore and in wholesale operations, although partially offset by growth from the expanding Neighborhood store network.
The gross profit margin showed notable improvement, standing at 45.8% or $10.5 million, up from 43.7% or $10.9 million in Q1 2023. This rise is attributed to reduced product discounting at retail outlets.
Operational expenses were reduced, amounting to $14.1 million compared to $15.3 million in Q1 2023, a decrease of 7.6%. The net loss for the quarter improved to $5.9 million from an $8.5 million net loss in the previous year, marking a 30.7% improvement.
Adjusted EBITDA was reported at a break-even level, a significant improvement from a loss of $1.3 million in the previous year‘s first quarter. This was aided by better gross margin performance and stringent cost control measures.
As of March 31, 2024, Planet 13 reported having $20.8 million in cash, up from $11.8 million at the end of 2023. Total assets stood at $157.4 million, an increase from $151.7 million at the close of the previous year. Total liabilities were reported at $45.6 million, a slight rise from $44.1 million.
Larry Scheffler, Co-CEO of Planet 13 Holdings, highlighted the strategic shifts in response to the cannabis rescheduling from schedule I to schedule III, remarking, “The removal of the punishing 280e tax treatment fundamentally alters our cash flow and net income potential. We are preparing to capitalize on this change by instituting a new growth plan aimed at offsetting the continued pricing pressure in the Nevada market.”
Bob Groesbeck, co-CEO, further emphasized the company’s growth strategy, mentioning the opening of the DAZED! cannabis lounge in April and the near completion of the VidaCann acquisition, positioning the company for a significant role in the Florida market, especially in anticipation of adult-use legalization.
Planet 13 Holdings’ Q1 2024 financial results reveal the company is adjusting to industry challenges and poised to capitalize on new regulatory changes and market opportunities. 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.
