1933 Industries Q3 FY23 Revenue Declines 4.7% YoY, What About Adjusted EBITDA?

1933 Industries Inc. TGIFF TGIF, a Nevada-focused cannabis cultivator and producer, released its third quarter financial results revealing revenues of CA$4.1 million ($3 million) for Q3 2023 and CA$13.3 million YTD 2023,  a decrease of 4.7% compared to CA$4.3 million for Q3 2022 and an increase of 34.3% compared to CA$9.9 million YTD 2022.

The company owns 91% of Alternative Medicine Association (AMA), the company's cultivation and production subsidiary focused on the medical and adult-use cannabis market, and 100% of consumer-packaged goods manufacturer Infused MFG LLC. The company's revenue is derived from wholesale cannabis sales in Nevada (AMA), and from the sale of hemp-derived wellness products (Infused) under the Canna Hemp brand sold across the US via e-commerce.

During the reporting period, the company continued its retrofit and upgrade of the cultivation facility's irrigation piping system, which negatively impacted flower cultivation and yields. Despite the disruption in production, AMA improved revenues by 12% from CA$3.6 million in its previous quarter in 2023. Improvements and maintenance to the building will continue into Q4 2023.

Q3 FY 2023 Financial Highlights

• Gross margin was a loss of CA$1.6 million, compared to profit of CA$2 million in Q3 FY 2022.

• Net loss was CA$3.4 million for Q3 2023, compared to a loss of CA$12.4 million in Q3 FY 2022.

• Adjusted EBITDA was a negative CA$2.8 million, compared to positive CA$336,104 in Q3 FY 2022.

• Cash at the end of the period was CA$1.7 million.

Paul Rosen, chairman and CEO of 1933 Industries stated, "I am pleased to report on the substantial completion of the upgrade of the irrigation and humidification systems in our cultivation facility. This infrastructure undertaking was a necessary step to increase production of high-quality flower and trim for our sought-after cannabis products, which are consistently ranked as top sellers in Nevada. The upgrade will continue into the current quarter and is important for our long-term growth. Despite the construction in progress, we increased our revenue from the previous quarter. Demand for the company's AMA products remains strong and has continued to accelerate into the current quarter."

Photo: Benzinga edit with photo by Kindel Media on Pexels

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