Body and Mind Inc BMMJ, a cannabis multi-state operator (MSO), announced its earnings on Thursday.
Q1 2024 Financial Highlights
- Revenue was $5.5 million, marking a 7% decrease from the $5.8 million in Q1 FY2023
- Net income was $0.2 million, compared to a net loss of $3.0 million in Q1 FY 2023.
- Adjusted EBITDA and gross profit were not included in the earnings report.
The company experienced a 7% reduction in revenue, totaling $5.5 million, compared to $5.8 million in the same period last year. Notably, it recorded a positive net income of $0.2 million, a significant improvement from the net loss of $3.0 million in the previous year’s first quarter. This turnaround is attributed to the profitable sale of their Ohio dispensary. Furthermore, gross margins saw a substantial increase to 37.4% in Q1 FY2024, up from 14.7% in Q1 FY2023.
In strategic moves, Body and Mind completed the sale of its Ohio dispensary for $8.2 million in cash, used to fully repay a $7.3 million senior secured debt. This repayment is expected to save the company approximately $1 million annually in interest payments.
The company also received a $2.0 million cash deposit for the sale of its Ohio processing operation and closed a transaction in Long Beach, resulting in the return of approximately 1% of its outstanding shares.
Management Commentary
Body and Mind’s management highlighted its focus on strengthening the balance sheet by divesting the Ohio dispensary and repaying $7.33 million in senior secured debt, leading to significant cost savings. Company officials expressed satisfaction with the improved gross margin and the reduction of shares outstanding by 1% following the Long Beach dispensary deal.
The company is anticipating the launch of new dispensaries in Illinois and New Jersey in 2024, aiming to expand its brand and presence in these markets.
BMMJ Price Action
BMMJ's shares were trading 34.78% lower at $0.06 per share at the time of this writing around 11 AM ET Thursday.
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