The Cannabist Company Holdings Inc (OTC:CCHWF) (NEO: CBST) (FSE: 3LP), a U.S. cultivator, manufacturer, and retailer of cannabis products formerly known as Columbia Care, announced its financial results for Q3 2023 on Tuesday, reporting a revenue of $129 million for the quarter, revealing a 2.6% year-over-year decrease.
Q3 2023 Financial Highlights
- Revenue dropped to $129 million from $133 million in Q3 2022.
- Net loss reported for Q3 2023 was $36 million, improving from a loss of $38 million in the previous year.
- Adjusted EBITDA remained relatively stable at $20.5 million, compared to $20.9 million in Q3 2022.
- Gross profit also decreased to $37 million, compared to $52 million in the same period last year.
- The company ended the quarter with $60.3 million in cash, compared to $37.0 million in Q2 2023, an increase of over 60%.
Company Insights On Financial Results
CEO Nicholas Vita commented on the results. "The third quarter results demonstrate consistent execution, with stable revenue of more than $129 million and Adjusted EBITDA of more than $20 million, in a complicated quarter rife with corporate actions and changes to the business, in only 8 weeks of operating as an independent company." He highlighted the company's focus on resetting manufacturing priorities and restructuring elements of COGS to drive gross margin improvement in 2024.
Operational Highlights And Growth
Operational highlights include a 3.3% sequential increase in wholesale revenue, steady retail revenue with growth in Maryland, and the opening of a new Cannabist location in Virginia. The company now operates 86 stores, with more planned for 2024 in Maryland, New Jersey, New York, Ohio, and Virginia.
In terms of cultivation, the company reported a 9% reduction in the cost per cultivated gram year-over-year and introduced high-potency strains commanding premium pricing in the market.
Stock Buyback Initiative
Additionally, The Cannabist Company announced a new initiative to buy back up to 15 million of its common shares, about 3.6% of its outstanding shares. This normal course issuer bid, pending CBOE Canada Exchange approval, reflects the company's belief that its current share price doesn't fully represent its business value and potential.
The buyback is set to commence around November 16, 2023.
CCHWF Price Action
CCHWF's shares were trading stable at $1.14 per share at the time of this writing around noon ET Tuesday.
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