Vertical Integration Pays Off For This Cannabis Company In Q2 2023, Here's Why

Author: Jelena Martinovic | August 29, 2023 12:35pm

Cansortium Inc. (CSE:TIUM) (OTCQX:CNTMF), a vertically-integrated, multi-state cannabis company operating under the FLUENT brand, announced on Monday financial and operating results for the second quarter ended June 30, 2023.

"We continued to drive revenue growth and cash flow generation during the second quarter through a combination of organic growth as well as new store openings in Florida," CEO Robert Beasley said. "We have opened four new stores in Florida this year that are still ramping and we continue to expect opening an additional 1-2 new stores before year-end, all while improving our cultivation to deliver more high-THC products."

Q2 2023 Financial Highlights

Revenue increased 9% year-over-year to $24.4 million compared to $22.4 million in the prior year's period.
Florida revenue increased by 11% year-over-year, reaching $20.1 million compared to $18.2 million in the second quarter of 2022.
Adjusted gross profit increased 5% year-over-year to $15.8 million or 64.6% of revenue, compared to $15 million or 67% of revenue in the corresponding quarter of last year.
Adjusted EBITDA came in positive at $8.6 million compared to $10.2 million, with the decrease primarily driven by increased selling, general and administrative expenses related to new store openings that are still ramping.
Cash flow from operations for the three months ended June 30, 2023, was $4.8 million compared to $5.8 million in the prior year.
Net loss amounted to $5.35 million, down from $12 million in the prior year's period.
On June 30, 2023, the company had approximately $8.8 million of cash and cash equivalents and $59.3 million of total debt, with approximately 298 million shares outstanding.

Recent Operational Highlights

In Florida, Cansortium currently operates 33 stores and anticipates opening an additional 1-2 new stores by the end of 2023.
Welcomed John Mazarakis to the board of directors. He brings over 25 years of entrepreneurial, operational and managerial experience to Cansortium.
Completed its headquarters relocation from Miami to Tampa, Florida, and will create more than 30 new jobs in administration, finance, human resources, marketing, sales, operations and other vital areas.
In Texas, the company completed its first B2B sale and expects to open its brick-and-mortar delivery center in Houston by the end of the year.

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