California hashish producer and retailer Glass Home Manufacturers reported fourth-quarter enhancements in gross earnings and margins for the fourth quarter of 2023, resulting in file income of $160.8 million for the complete 12 months.
Income within the fourth quarter hit $40.4 million, up 35% from the identical interval a 12 months in the past, Glass Home executives mentioned throughout a Thursday earnings name with analysts.
The Lengthy Seaside-based firm’s wholesale enterprise drove the good points, bringing in income of $26.8 million, up 71% year-over-year.
Glass Home’s retail enterprise, which incorporates 10 California shops, noticed income slide to $9.6 million, down 5% as product reductions and promotions minimize into gross sales.
The corporate posted a gross revenue of $18 million within the fourth quarter, up 96% from a 12 months earlier.
Its gross margin was 45%, up from 31% from the fourth quarter of 2022.
For the complete 12 months, Glass Home’s file income was up 89% from 2022, primarily pushed by wholesale manufacturing.
The corporate mentioned adjusted earnings in 2023 reached $24.5 million, in contrast with a $22.3 million loss a 12 months in the past.
Glass Home ended 2023 with $32.5 million in money, up from $14.1 million in 2022.
The corporate offered first-quarter and full-year steerage for 2024, projecting income of $28 million-$29 million and $215 million-$220 million, respectively.
CEO Kyle Kazan mentioned throughout the name that Glass Home’s newest greenhouse enlargement in Camarillo, which incorporates 700,000 sq. ft of marijuana crops, started cultivation Jan. 22, with its first harvest on March 18.
“We anticipate to start producing income within the second week of April,” he mentioned.
In an effort to fight California’s thriving unlicensed market, Kazan launched the corporate’s latest model Allswell, which can promote for lower than $10 per eighth, taxes included, at its community of shops earlier than April 20, sometimes the busiest days for marijuana retailers.
“One of the best ways to take share from the illicit market is to offer examined, protected hashish of upper high quality and at a lower cost than the unlawful market,” he mentioned.
The corporate additionally shuttered its Forbidden Flowers and Area manufacturers, Kazan mentioned throughout the name.
“These had been high-quality merchandise that nonetheless haven’t achieved {the marketplace} acceptance and economics required to advantage continued promotion and manufacturing,” he added.
Different Glass Home highlights in 2023 included:
- Promoting 339,000 kilos of wholesale hashish, up 97% from 172,400 kilos in 2022.
- A median value per pound of $312, up 43% from 2022.
- Working money movement of $23.2 million, in contrast with a lack of $40.8 million in 2022.
Glass Home shares – which commerce as GLAS on the Cboe Canada alternate and GLASF on the U.S. over-the-counter markets – had been up 3.2% to $8 in noon buying and selling Thursday.
Chris Casacchia could be reached at chris.casacchia@mjbizdaily.com.