The following is a summary of the Medicine Man Technologies, Inc. (SHWZ) Q4 2023 Earnings Call Transcript:
Financial Performance:
Medicine Man Technologies (Schwazze) reported Q4 revenue of $43.3 million, up by 8%.
The company had a significant gross profit of $7 million (16% of total revenue) with an adjusted gross profit of 47% of the total revenue.
Operating expenses decreased compared to the previous year, accounting for 54% of the revenues.
The company reported an operating loss of $16.2 million.
Schwazze ended the year with a cash position of approximately $19 million and generated $12 million from its operations.
Business Progress:
Schwazze reported a high single-digit sales growth and expanded its store footprint by more than 50% in competitive markets.
There is expected store closure in New Mexico due to regulatory efforts, and this is expected to continue through 2024.
Wholesale penetration improved three times in 2023, exceeding 27% in Colorado and New Mexico.
The company plans to launch Lowell Farms in New Mexico and Everyday Weed in Colorado in Q2 2024.
Expectations of regulatory changes could have a significant impact on cash flow generation and the overall perspective of the cannabis industry.
The company aims to continue its retail development in New Mexico and Colorado and is exploring new brand development.
More details: MEDICINE MAN TECHNOLOGIES INC IR
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