A vertically-integrated cannabis company 4Front Ventures Corp. (CSE:FFNT) (OTCQX:FFNTF) reported its financial results for the fourth quarter and full year ended December 31, revealing quarterly revenue of $21 million, down 21% from the same period of 2022. For the three months ended December 31, the multi-state operator disclosed an Adjusted EBITDA of $2.5 million.

"Our growth strategy, particularly in Illinois with the imminent opening of our Matteson facility and two new stores, is expected to double our production capacity and significantly boost our revenue and profitability in the state," stated Andrew Thut, CEO of 4Front Ventures. "Additionally, we anticipate further growth in Massachusetts that is expected to accelerate starting in the second quarter, as we expand our wholesale channels and continue to benefit from investments in our cultivation facilities, adjustments made to our product lines, and an improved menu offering."

Fiscal year 2023 Highlights

• Total revenue amounted to $97.4 million, compared to $107.7 million in 2022.
• Adjusted EBITDA was a gain of $10.1 million, versus adjusted EBITDA of $31.9 million last fiscal year.
• Gross profit was $45.9 million, which compares to gross profit of $51.4 million in the previous year.
• Net loss amounted to $91.6 million, versus a net loss of $46.9 million in 2022.
• As of December 31, 2023, 4Front had $3.4 million in cash and 47.5 million in related-party long-term debt, which has since been reduced by $23 million post quarterly, by converting $23 million of senior secured debt into common stock and reducing annual interest expense by approximately $3 million.

"Over the past year, we achieved substantial growth in our wholesale revenue, with a 75% increase in Illinois and 42% in Massachusetts. This growth is a testament to our capacity to deliver high-quality products at the right price," Thut continued. "The Washington facilities enjoyed a significant revival, with flower revenue nearly doubling from the first to the last quarter. It's noteworthy that these positive achievements helped to balance out a year fraught with headwinds, particularly in California, and in other competitive local environments as well. While these challenges were costly, they have ultimately paved the way for a more focused, streamlined, and profitable business. We have learned a great deal from our experiences, and our team is stronger and better prepared for the future as a result. With the advancement of our Matteson facility and our ongoing expansion into Illinois retail, I believe that 2024 and 2025 will truly showcase our ability to compete and win in battleground markets."

Price Action

4Front Ventures shares closes Monday market session 2.0% lower at $0.09 per share.

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