The following is a summary of the TILT Holdings Inc. (TLLTF) Q4 2023 Earnings Call Transcript:
Financial Performance:
TILT Holdings reported Q4 2023 revenue of $37.5 million, down from $44.3 million in the previous year, attributed mainly to the timing of Jupiter shipments.
Full year 2023 revenue decreased to $166 million from $174.2 million in the previous year, due to shipment timing and lower average prices in certain Jupiter product lines.
Gross margin in Q4 was reduced to 9.5% from 18.8% in the previous year, with the full-year gross margin at 14.7% compared to 21.9% in 2022.
Net loss in Q4 amounted to $22 million, a significant decrease from a loss of $73.1 million in the same period the previous year. For the full year, net loss was $62.4 million compared to a loss of $107.5 million in 2022.
The company ended the year with $3.3 million in cash, cash equivalents, and restricted cash, slightly less than $3.5 million at the year-end of 2022.
Business Progress:
TILT Holdings improved operational efficiency as part of its rebuild strategy in 2023, leading to $8 million in annualized savings.
The company refined its brand partnership strategy, focusing on brands aligning with its broader inhalation platform. They signed agreements with Smoore and Edie Parker in line with this strategy.
In-house brand Standard Farms was recognized as the fastest-growing brand in Massachusetts in 2023.
For 2024, TILT is shifting its focus from cost savings to revenue growth, planning to leverage growing demand in the cannabis and hemp markets for inhalation products and take advantage of federal reforms for their plant-touching assets.
They are eyeing market growth in Ohio and Pennsylvania, preparing for the anticipated legalization of adult use.
In European markets, final stages of technical review are underway for the Liquid Que vaporizer and the Jupiter brand.
TILT and Jupiter are also working on the commercialization of Thredz technology, allowing brands to create personalized consumption experiences.
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