The US cannabis market continues to see declining revenues for its operators, with Jushi Holdings (CSE: JUSH) being the latest multi-state operator to report a decline in topline revenues.
Revenues declined in the second quarter to $66.4 million, an 8.7% decline from the $72.8 million recorded in the year ago period, and a 4.9% decline from the first quarter of 2023. The decline was blamed on the closure of underperforming retail locations, as well as increased competition and the further opening of states to recreational markets, which has reduced demand in neighbouring states.
Gross profit during the quarter improved to $30.6 million, which was partially offset by operating expenses of $27.2 million, with Jushi reporting an income from operations of $3.4 million.
After other expenses and taxes, the company reported a net loss of $14.0 million for the quarter, which was on par with the first quarter, and a decline from the $12.1 million in net income reported in Q2 2022. Adjusted EBITDA meanwhile improved to $12.6 million, up 66.0% from the $7.6 million recorded in Q1.
“Our results for the quarter reflect the strides we have made toward long-term, reliable profitability as we work to deliver sustained improvements in our fundamentals. With rigorous cost controls and robust operational discipline, we believe we are positioned to achieve our goal of generating positive operating cash flow within the next few quarters,” commented Jim Cacioppo, CEO and Chairman of Jushi.
Cash and equivalents meanwhile improved to $32.1 million as of quarter end.
Jushi Holdings last traded at $0.55 on the CSE.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
