The Cannabist Company’s Reports FY 2023
The TDR Three Key Takeaways for The Cannabist Earnings:
- The Cannabist Company’s revenue remained at $511M
- Notable debt reduction and net loss improvement in 2023
- The company aims for growth through strategic partnerships and retail expansion.
The Cannabist Company Holdings Inc. (NEO: CBST, OTC: CBSTF), headquartered in New York, reported its financial results for both the fourth quarter and the entire year as of December 31, 2023. The company maintained flat revenue, reporting $511.3 million for the year, mirroring its previous year’s performance amidst a challenging market.
The company achieved a gross profit of $179.9 million in 2023, with a gross margin reaching 37.9%. These figures, slightly down from the previous year. The adjusted EBITDA rose slightly to $69.6 million from $67.4 million in 2022, alongside an improvement in the net loss, showing some progress from previous strategic improvements.
David Hart, CEO of The Cannabist Company, emphasized the year’s key achievements, such as significant cost-cutting measures and the reduction of $30.6 million in debt in the last quarter. These efforts are expected to refine the company’s operations and retail strategy moving forward.
Operational progress in 2023 included maintaining 86 retail locations and forming strategic partnerships, positioning the company for growth in adult-use cannabis markets. The rise in wholesale revenue to 13% of total revenue in Q4 and a focus on in-house brand sales reflect a diversified business model poised for expansion.
Financial changes in 2023 laid the groundwork for future growth, with debt reduction and a strategic inventory management resulting in $9.4 million in operational cash flow in the fourth quarter. The company plans to manage capital expenditures carefully, investing in new stores and manufacturing enhancements in alignment with growth plans.
Looking into 2024, The Cannabist Company focuses on sustainable margin improvement and cash flow generation, underpinned by strategic partnerships and retail network expansion. The company’s approach in 2023 has not only helped maintain revenue in a challenging year but potentially sets the stage for capitalizing on upcoming growth opportunities. Want to keep up to date with all of TDR’s research, subscribe to our daily Baked In newsletter.
