TILT Holdings Announces Q4 and Full Year Results

The TDR Three Takeaways for TILT

  1. TILT Holdings improved operational efficiency and reduced expenses in 2023.
  2. Fourth-quarter revenue was affected by delayed orders, leading to quarterly and annual drops in revenue.
  3. TILT Holdings is committed to expanding its market presence and enhancing revenue through strategic partnerships and innovation in 2024.

In 2023, TILT Holdings (CBOE: TILT, OTC: TLLTF) a global provider of cannabis business solutions, reported its financial and operating results for both the fourth quarter and the full year. The company saw foundational progress, addressing operational efficiency, expense reduction, and debt restructuring. These efforts were aimed at improving the company’s balance sheet amidst the challenges faced throughout the year.

The fourth quarter highlighted a significant order volume for Jupiter, TILT’s inhalation technology platform, due to anticipation of Chinese New Year demands. This led to an agreement with Smoore Technology Limited to expand trade payable lines and ensure product shipment continuity. Despite this, the timing of these orders impacted Q4 revenue and profitability, a setback expected to be rectified with deliveries in Q1 2024.

For the full year, TILT reported a decrease in revenue from $174.2 million in the prior year to $166.0 million, attributed to order shipment timings and pricing adjustments in certain product lines. Gross profit also saw a decline, with the gross margin falling to approximately 14.7% from 21.9% the previous year. This decrease was driven mainly by non-cash inventory adjustments and lower pricing in some markets.

The net loss improved, however, from $107.5 million in the previous year to $62.4 million, thanks to a decrease in operating expenses, primarily due to reduced non-cash impairment losses. Adjusted EBITDA saw a slight decrease, reflecting the challenges related to order timings but was offset by operational cash flow improvements.

Operational highlights included partnerships with Edie Parker and the launch of the THREDZ™ stackable cartridge system, showcasing TILT’s commitment to innovation and market expansion. The agreement with Smoore and collaborations with brands like Barker Canna Co. underline TILT’s strategy to enhance its product offerings and market reach.

Despite the hurdles in 2023, TILT Holdings is positioned to focus on revenue growth in 2024, backed by a more efficient operating structure and market demand for its products. The company’s leadership expressed optimism about executing on its strategic vision. Want to keep up to date with all of TDR’s research and news, subscribe to our daily Baked In newsletter.   

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