Jushi Holdings Slashes Net Loss, Adds 300+ Weed Products And Refinances Facility Debt All In Q2 2024

Jushi Holdings Inc. JUSHF has announced its financial results for the second quarter ended June 30, 2024, showcasing significant operational improvements and strategic developments.

The company reported a net loss of $1.9 million, a considerable improvement from a $14.0 million loss in Q2 2023.

“Our second quarter performance underscores our efforts to strengthen our asset base while maintaining prudent cost-saving measures, ” stated Jim Cacioppo, CEO, chairman and founder of Jushi. “Our organization-wide operational improvement plan is yielding promising results, with gross margin reaching 50.4% and Adjusted EBITDA further improving to 22.4% of revenue for the quarter. These successes were driven by efficiencies achieved mainly at our Virginia grower-processor facility.”

Key Financial Indicators

• Net Loss:  Jushi's net loss decreased to $1.9 million from $14.0 million in the same quarter the previous year.
• Revenue: Total revenue stood at $64.6 million.
• Gross Profit and Margin: Gross profit reached $32.6 million with a gross margin of 50.4%.
• Adjusted EBITDA: Adjusted EBITDA was $14.5 million with a margin of 22.4%.
• Cash Position: Cash and equivalents totaled $35.0 million at the quarter’s end.

Operational Highlights And Strategic Developments

During the quarter, Jushi continued to expand its product offerings, debuting 308 new SKUs and enhancing its market presence in Nevada and Pennsylvania.

Growth And Market Expansion

Jushi has been actively expanding its market presence, particularly in Ohio and Virginia, with the introduction of new products and the enhancement of product quality and potency.

The company's wholesale business experienced a year-over-year increase of 11.6% to $7.6 million, driven mainly by growth in Virginia.

“Our commercialization strategy remains a pivotal driver of our performance improvements, (...) we launched an additional 308 new, high-margin SKUs across our footprint, bringing our year-to-date total to an impressive 751 new SKUs. (...) Our wholesale business also continues to perform well, particularly in Ohio which saw a 110% sequential and 76% year-over-year sales increase,” Cacioppo said.

“We will continue to scale our operations in Ohio, with plans to expand our capacity by approximately 15,000 square feet of double-stacked cultivation,” he added.

Future Outlook

After the quarter, Jushi strengthened its balance sheet through strategic refinancing and debt reduction, positioning it well for upcoming market expansions in key states like Ohio, Pennsylvania, and Virginia.

Jushi Holdings completed the refinancing of its first lien debt with SunStream Bancorp Inc. through the issuance of $48.5 million in secured term loans and $4.3 million in cash, significantly strengthening its balance sheet. This strategic financial maneuver also facilitated additional debt repayments, reducing the company's short-term debt from $10.0 million to less than $1.0 million.

Read Next: Aurora Cannabis Shares Jump On Q1 FY25 Earnings, Global Medical Marijuana Yields Record Revenue Of $343M

“We’ve successfully refinanced our Acquisition Facility debt with a new term loan of $48.5 million and payments in July of $6.8 million from cash on hand. In addition, we repaid $3.6 million of promissory notes,” Cacioppo concluded.

These issues will be among the hot topics at the upcoming Benzinga Cannabis Capital Conference in Chicago this Oct. 8-9. Join us to get more insight into what the wave of weed legalization means for the future of investing in the industry. Hear directly from top executives, investors, advocates, and policymakers. Get your tickets now before prices go up by following this link.

Photo: AI-generated image.