California cannabis producer Blüm Holdings Inc. (OTCQB:BLMH) announced on Tuesday financial results for the full year and fourth quarter ended Dec. 31, 2023.
The company reported a 36% year-over-year drop in revenue to $33.2 million, due to a "strategic slowdown in its underperforming distribution segment." However, the company's CFO Patty Chan said the decrease in gross margin was only $0.5 million on a revenue decrease of $18.8 million.
"2023 was a truly transformative year for Blüm Holdings during which the Company focused on disposing nearly all the company's underperforming assets and significantly reducing selling, general, and administrative expenses while simultaneously realigning our strategic focus to increasing our gross margin from 35% in 2022 to 53% in 2023," Chan said.
During the fourth quarter the company completed the exit of its unprofitable cultivation facility in Northern California.
Subsequent to the quarter, Blüm Holdings, Inc. became a parent company of Unrivaled Brands, Inc. In January, Unrivaled Brands, said it had wrapped up its previously announced strategic reorganization.
As another earnings season wraps up, the financial performance of top cannabis operators nationwide will surely be one of the hot topics at this week's Benzinga Cannabis Capital Conference in Florida.
Q4 2023 Financial Highlights
- Revenues remained steady at $8.1 million, with gross margin increasing to 54% from 51% in the prior quarter ended Sept. 30, 2023.
- Gross profit totaled $4.4 million, compared to $4.2 million in the prior quarter.
- Operating expenses increased by 23% to $11.1 million compared to the consecutive prior quarter.
- Net loss from continuing operations was $9.6 million, an increase from $3.1 million in the fiscal third quarter.
FY 2023 Financial Highlights
- Gross profit was $17.7 million, down from $18.1 million in 2022.
- Net loss from continuing operations was $13.8 million, an improvement of 93% compared to $183.9 million from the prior year.
- Adjusted EBITDA loss from continuing operations, a non-GAAP measure was $6 million, compared to adjusted EBITDA loss of 18.3 million in the prior year.
- Cash used in operating activities from continuing operations decreased 85% to $1 million compared to $6.4 million in the prior year.
BLMH Price Action
Blüm Holdings' shares traded 12.36% lower at $0.78 per share after the market close on Monday.