This Cannabis MSO's Q2 Results Reflect Healthy Momentum Amid Industry Headwinds

Vertically integrated cannabis company AYR Wellness Inc. AYR AYRWF reported its financial results for the second quarter ended June 30, 2023 on Thursday, revealing a 0.8% sequential decrease and 18% year-over-year increase in revenue to $116.7 million.

Q2 2023 Financial Highlights

• Gross profit totaled $56.6 million, up from $48.3 million in the prior period and $36 million in the same quarter of 2022.
• Adjusted gross profit amounted to $69.1 million, representing an increase from $65.3 million in the first quarter of 2023 and $51.5 million in the corresponding period of last year.
• Operating loss was $4.5 million, down from $21.7 million in the first quarter of this fiscal year and $23.7 million in the second quarter of 2022.
• Net loss was $30.6 million, compared to $228.2 million in the prior period and  $40.2 million net loss in the prior year’s quarter.
• Adjusted EBITDA came in positive at $29.4 million, up from a positive adjusted EBITDA of $26.3 million in the prior period and $16.5 million in the prior year’s second quarter.
• Adjusted EBITDA margin was 25.2% compared to 22.4% in the previous quarter and 16.7%  in the prior year’s period.
• Total operating expenses were $4.5 million, down from $26.2 million in the previous quarter to $23.7 in the prior year.
• As of June 30, the company had $1.47 billion in total assets, $60 million in current cash and $854.7 million in total liabilities.

“As we look to the rest of the year, we plan to accelerate our cash generation via our 2023 optimization plan, making strides in inventory optimization, continuing to align our production with demand, and developing further synergies within our supply chain, retail, wholesale and purchasing functions,” David Goubert, president and CEO of AYR said. “We believe our ongoing initiatives to grow our Florida footprint, improve operations in New Jersey, and build out retail footprints in Ohio, Illinois, and Connecticut will enable us to accelerate growth in the quarters ahead.”

To learn more about the company’s plans to expand its footprint, join us at Benzinga’s fall event, where Jamie Mendola, Ayr’s chief business development officer and GM of the Western Region, will be featured as a speaker.

It will be interesting to see what the company’s next steps in the Buckeye State will be, particularly now that it’s official that Ohioans will vote on recreational marijuana use this November.

Price Action

Ayr’s shares traded 1.07% higher at $0.885 per share at the market close on Wednesday afternoon.

The Benzinga Cannabis Capital Conference, the place where deals get done, is returning to Chicago this Sept 27-28 for its 17th edition. Get your tickets today before prices increase and secure a spot at the epicenter of cannabis investment and branding.

Photo: Courtesy of geralt and Kindel Media by Pixabay