The following is a summary of the Ayr Wellness Inc. (AYRWF) Q1 2024 Earnings Call Transcript:
Financial Performance:
Ayr Wellness reported sales of $118 million in Q1 2024, up 2.8% from the previous quarter and less than 1% from the prior year.
The company increased their adjusted EBITDA by $8 million year-on-year to $29.1 million, despite a slight decrease from the previous quarter.
Ayr generated an operating cash flow of $8.7 million and managed to achieve positive free cash flow despite a CapEx payment of $6.8 million.
Business Progress:
Ayr marked a year since rebranding their Florida stores, with plans to extend the rebranding in Illinois and Boston by year-end.
The company is seeing growth in their wholesale business, particularly with the relaunch of their core brands, Kynd and HAZE.
Ayr is enhancing cultivation capacity and refining operations for better inventory flow.
They are gearing for growth in key markets like Ohio, Florida and Pennsylvania as these transition from medical to adult use.
The company plans to expand retail footprint, with a target of 70 outlets in Florida by end of 2024 and two new stores in Illinois by early Q3.
They aim to maintain a 25% adjusted EBITDA margin for 2024, with hopes of generating positive cash flow.
More details: AYR WELLNESS INC IR
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