What Do EBITDA Changes, Gross Margin Insights And Sales Slump Tell Us About This Cannabis Company?

Vibe Growth Corporation VIBE VIBEF, a vertically integrated cannabis company in California, released its financial results Wednesday for the three and six months ending June 30, 2023.

In terms of EBITDA, the adjusted loss for Q2 2023 was $557,056, marking an improvement from the previous quarter's $2,706,964 loss.

Vibe CEO Mark Waldron noted the groundwork for centralized purchasing and distribution, resulting in better gross margins. He also highlighted upcoming strategies like new product launches and increased marketing efforts.

Financial Results: Q2 2023

• Total Revenue: $3,690,295
• Gross Margin: $1,312,675
• Net Loss: ($1,397,542)
• Adjusted Funds Flow: ($1,012,428)
• EBITDA: ($641,893)
• Adjusted EBITDA: ($557,056)

Cash Position, Dispensary Sales, And EBITDA Trends

The company reported a cash position of $3.19 million as of June 30, 2023. Dispensary sales for Q2 2023 were $3.69 million, showing a 7.75% decline compared to the previous quarter. Despite this, the average dispensary basket size saw a marginal increase.

While the company achieved a total revenue of $3,690,295 and a gross margin of $1,312,675, the net loss of ($1,397,542) and adjusted funds flow of ($1,012,428) demonstrate a challenging financial position. The negative EBITDA of ($641,893) and adjusted EBITDA of ($557,056) reflect ongoing operational difficulties.

Despite the net loss, the slight improvement in adjusted EBITDA, when compared to the previous quarter, indicates some progress in managing costs and enhancing operational efficiency. However, the decline in dispensary sales by 7.75% raises concerns.

The modest increase in average dispensary basket size may suggest a degree of customer spending resilience, potentially buoyed by strategic pricing and product offerings.

Learn more about the performance of cannabis companies at the upcoming Benzinga Cannabis Capital Conference, the place where deals get done, which is returning to Chicago this September 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 by Ryan Lange on Unsplash.