NY Cannabis Giant Cannabist's 2023 Revenue Consistent With Prior Year At $511M, Narrows Q4 Net Loss By 76% YoY

The Cannabist Company Holdings Inc. CBST CBSTF 3LP reported its financial and operating results on Wednesday for the three months and full year ended Dec. 31, 2023, revealing a 76% year-over-year decrease in a net loss to $72.5 million in the fourth quarter. Quarter-over-quarter net loss grew by 100% in the fourth quarter.

The New York cannabis producer reported its 2023 revenue was consistent with 2022, hovering around $511 million.

"In 2023, we successfully produced topline revenue of $511 million, consistent with the prior year, and implemented significant cost reduction programs that resulted in Adjusted EBITDA and net loss improvements over 2022," said CEO David Hart. "In addition, we further improved our capital structure through the retirement of $30.6 million of debt in the fourth quarter. It is a credit to the Cannabist team to have achieved these accomplishments during a year when we unwound the prior merger agreement."

Q4 2023 Financial Highlights

• Revenue totaled $128.4 million compared to $129.2 million in the prior quarter and $126.2 million in the prior year period.
• Gross profit amounted to $43.6 million, up from $37.1 million in the prior quarter and $41.6 million in the prior year period.
• Adjusted gross margin was 34.1%, compared to 38.9% in the third quarter of 2023, and 37.4% in the corresponding period of 2022.
• Loos from operations was $77.7 million, up from $19.3 million in the prior period and $361 million in the same quarter of last fiscal year.
• Adjusted EBITDA came in positive at $12.5 million, down from adjusted EBITDA gains of $20.5 million and $17.4 million in the prior quarter and the prior year's quarter, respectively.
• Ended quarter with $39.3 million in total cash, $3.5 million of which is restricted.

See also: The Cannabist Company Attacks Debt With Repurchasing Agreement To Reduce Leverage By Up To $25M

FY 2023 Financial Highlights

• Gross profit amounted to $180 million, down from $201.2 million in 2022.
• Adjusted gross margin was 37.9%, compared to 42.4% in the last fiscal year.
• Loos from operations was $105.2 million, down from $416.2 million in 2022.
• Adjusted EBITDA came in positive at $69.6 million, down from adjusted EBITDA gain of $67.4 million last fiscal year.
• Net loss was $174.3 million, down from $421.4 million in 2022.

2024 Outlook

"We began 2024 with renewed focus as The Cannabist Company," Hart added. "We are committed to continuously improving our operations and leveraging the investments that we have made in cultivation and manufacturing facilities by shifting the wholesale mix toward finished goods and engaging in strategic partnerships. We will continue to optimize our retail footprint and capitalize on the significant growth opportunities to come from markets transitioning to adult use."

There are 36 Cannabist locations nationwide, with additional openings planned in 2024 in Maryland, New Jersey and Virginia.

CBSTF Price Action

The Cannabist Co.'s shares traded 11.7029% lower at $0.252 per share after the market close on Tuesday.

Now read: Cannabist & Old Pal: A ‘Joint’ Venture Rolling Toward Market Expansion

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