This Cannabis Company Reports Robust Growth, Revenue Up 14% To $25.3M, Florida Sales Surge 17%

Cansortium Inc. TIUM CNTMF, a vertically-integrated, multi-state cannabis company operating under the FLUENT brand announced financial and operating results for the third quarter ended September 30, 2023.

“We generated record revenue and cash flow generation during the third quarter as we continued to execute on our growth objectives despite a seasonally slow period in Florida,” stated CEO Robert Beasley. “Adjusted EBITDA was offset by increased headcount to keep pace with new store openings, however, these investments are critical in laying the foundation for growth and supporting our future plans."

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Q3 2023 Financial Highlights

• Revenue Growth: The company experienced a 14% increase in revenue, reaching $25.3 million compared to $22.1 million in Q3 2022.
• Florida's revenue saw a significant uptick, rising by 17% to $21.3 million from $18.2 million in Q3 2022.
• Adjusted gross profit for Q3 2023 was $16.1 million, representing 63.9% of revenue. This compares to Q3 2022, where the adjusted gross profit was $16.7 million or 75.5% of revenue.
• Adjusted EBITDA for the quarter stood at $8.8 million, a decrease from the previous year's $11.7 million. The decline was attributed to additional salaries and wages, coupled with a lower average ticket per transaction. However, this was partially offset by the impact of increased customer transactions, per a press release.

Cash Flow and Financial Position

The cash flow from operations for the three months ending September 30, 2023, was reported at $7.1 million, showcasing a notable improvement from $5.4 million in the prior year.

As of September 30, 2023, the company held approximately $12.1 million in cash and cash equivalents. Concurrently, it carried a total debt of $60.3 million, with an outstanding share count of approximately 298 million.

Recent Operational Highlights

In Florida, Cansortium opened its Jacksonville – Cassat store, bringing the total number of operational stores to 33.

The company anticipates opening one additional shop in the Sunshine State by the end of 2023.

“In Florida, we continue to ramp our four new stores opened this year while driving cultivation improvements, leading to the production of more high quality, high THC products," said Beasley. "Although the third quarter is generally the most challenging period of the year in Florida, these operating improvements have enabled us to command higher retail prices and partially offset lower volumes from the summer months in Florida."

Looking ahead, the company aims to drive improvements across its footprint in Florida and Pennsylvania. Additionally, it plans to capitalize on its “(...) first mover advantage in Texas as we plan to open our brick-and-mortar delivery center in Houston in early 2024,” Beasley concluded.

Price Action

When writing this article on Wednesday afternoon, Cansortium Inc. (CNTMF) shares showed a decrease of 20.41%, trading at $0.078 per share.

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