The following is a summary of the Glass House Brands Inc. (GLASF) Q1 2024 Earnings Call Transcript:
Financial Performance:
Glass House Brands reported a 9% YoY rise in net revenue to $30.1 million in Q1 2024.
Production of biomass increased by 28% YoY, while cost per pound decreased.
The company's adjusted EBITDA and operating cash flow both improved over projections, ending the quarter with a cash holding of $24.4 million.
Q2 revenue is expected to reach a record $52 to $54 million, and by the midpoint of FY 2024, revenue is projected to be between $215 million to $220 million - a growth of 35%.
Adjusted EBITDA and Operating cash flows for the upcoming year look positive and the cost of production is forecast to decline.
Business Progress:
Glass House Brands is continuously working on improving costs without compromising the quality of their output.
The potential reclassification of cannabis will help improve financial access.
They have successfully launched the Allswell brand and completed the ramp-up of Greenhouse 5.
New cannabis genetics are being tested for future production and a new marketing strategy has been introduced to increase foot traffic and sales.
Glass House Brands participated in multiple events, thus marking its presence in the industry.
Reduction in cultivator licenses in California may affect supply, however, the company is on track with its own licensing and expects to see incremental improvement in operations.
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