California Cannabis Co. StateHouse Reports Flat Revenue YoY In Q1, CEO Touts Expanded Market Presence In FY 2023

StateHouse Holdings Inc. STHZ STHZF announced its first and fourth-quarter financial results on Thursday for the three-month periods ended March 31, 2024, and December 31, 2023, respectively as well as full-year fiscal 2023 results.

"Our efforts are not only improving our financial results but also helping to advance our market presence. We've climbed from the 8th largest California cannabis brand operator in 2023 to the 4th in 2024, driven by our commitment to bringing the products and brands customers want to market,"CEO Ed Schmults said. "Over the past 12 months, we introduced 23 new products as well as 40 in-house developed strain formulations, driving new product sales to approximately 15% of total sales in 2024."

Q1 2024 Financial Highlights

• Net revenues were $25.4 million, compared with $24.7 million in the first quarter of fiscal 2023.
• Retail revenues totaled $12 million representing 47.1% of total sales for the period, compared to $14.4 million or 47.2 of total sales in in the same quarter of last year. 
• Branded wholesale manufacturing revenues were $11.5 million, representing 45.2% of total sales for the quarter, compared to $9.4 million or 38.3% of total sales in the prior year's period.
• Cultivation revenues amounted to $2 million, representing 7.7% of total sales for the period, compared to $0.8 million or 3.2% of total sales in the corresponding period of 2023.
• Gross profit before adjustments for biological assets was $11.8 million, compared with $10.9 million in the first quarter of last year.
• Consolidated gross margins improved to 46.5%, compared to 44.3% in the prior year's period.
• Adjusted EBITDA came in positive at $0.8 million compared with adjusted EBITDA1 loss of $2.4 million in the same period of last year.

Read Also: StateHouse To Operate Humboldt County Cannabis Cultivation Facility

Q4 2023 Financial Highlights

• Net revenues were $25.1 million, compared with $25.5 million in the same quarter of 2022.
• Retail revenues were $13 million representing 51.8% of total sales for the period, compared to $16.4 million or 64.3% of total sales in the fourth quarter of 2022.
• Branded wholesale manufacturing revenues were $11.7 million, representing 46.5% of total sales for the quarter, compared to $8.6 million or 33.7% of total sales in the corresponding quarter of last year.
• Cultivation revenues were $0.4 million, representing 1.5% of total sales for the period, compared to $0.5 million or 1.9% of total sales in the same quarter of 2022.
• Gross profit before adjustments for biological assets was $10.4 million, compared with $10.8 million in the corresponding period of 2022.
• Consolidated gross margins declined to 41.6% in the fourth quarter, compared to 42.4% in the same quarter of 2022.

FY 2023 Financial Highlights

• Net revenues were $101.0 million, compared with $108.2 million in the 2022 fiscal year.
• Retail revenues were $53.6 million representing 53% of total sales for fiscal 2023, compared to $63 million or 58.2% of total sales in fiscal 2022. 
• Branded wholesale manufacturing revenues totaled $44 million, representing 42.5% of total sales for fiscal 2023, compared to $40.7 million or 37.6% of total sales in fiscal 2022.
• Cultivation revenues were $2.9 million, representing 3.5% of total sales, compared to $4.6 million or 4.2% of total sales in fiscal 2022.
• Gross profit before adjustments for biological assets was $45.1 million, compared with $42.1 million in fiscal 2022.
• Consolidated gross margins improved to 44.9%, compared to 36.2% for fiscal 2022.

In addition, the company said Kevin K. Albert was appointed director of the board of directors effective immediately following the filing of its 2023 annual financial statements and first quarter 2024 interim financial statements. Albert agreed to serve on the audit committee and special committee of the board.

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