C21 Investments Q2 2023 Revenue Declines 16% YoY, Here Are The Details

C21 Investments Inc. CXXIF CXXI Q2 2023 revenue was $7.2 million, a 16% decrease compared to $8.6 million in the same quarter of 2022, and 4% decrease sequentially.

Q2 2023 Financial Highlights

• Gross margin of 53.8% - up 40 basis points sequentially,

• Adjusted EBITDA of $2.2 million, compared to $2.4 million in Q1 2023.

• Net income of $1.9 million, a decrease of 54% compared to $4 million in Q2 2022, up $1.6 million from Q1 2023.

• Earnings per share of $0.02

• Cash at the end of Q2 was $2.3 million, down $0.2 million from Q1. The company's senior secured note was reduced by $1.5 million in Q2 and total liabilities were reduced by $1.6 million during the quarter.

"I am pleased that again this quarter, C21 reported solid results, maintaining its strong margin and cash flow profile, despite the challenging market and macro conditions that persist," stated CEO and president, Sonny Newman. "Notwithstanding industry headwinds and state-level pricing pressures, the Nevada market appears to be showing signs of stabilizing. We believe the current industry environment will afford growth opportunities to those companies able to consistently generate positive free cash flow and that have strong balance sheets. Our strategy and focus has been to ensure C21 is well positioned to take advantage of growth opportunities that will produce long term benefits to stakeholders."

Subsequent to the quarter, the company has paid down its senior secured note by an additional $1.0 million, with $4.1 million outstanding as of September 1, 2022. Additionally, last week the city of Sparks, Nevada approved drive-thru windows at its licensed dispensaries. Silver State Relief intends to build out this sales channel in the coming months.

Photo by Mackenzie Marco on Unsplash

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