Planet 13 Cannabis Co. Shrinks Net Loss Over 60%, Achieves Positive EBITDA In Q4 Despite Industry Headwinds

Author: Jelena Martinovic | February 28, 2024 02:43pm

Cannabis multi-state operator Planet 13 Holdings Inc. (CSE:PLTH) (OTCQX:PLNH) announced its unaudited preliminary financial results on Tuesday for the three-month and full year ended Dec. 31, 2023.

Larry Scheffler, co-CEO of the Las Vegas-based company, called the fourth quarter "a solid" one, despite industry headwinds that are "challenging macroeconomic backdrop and the continued cannabis price compression."

Q4 2023 Financial Highlights

• Total revenue dropped 7.5% year-over-year to $23 million.
• Gross profit increased 2.8% year-over-year to $11 million.
• The gross margin was 47.8% compared to 43% in the prior year's period.
• Operating expenses declined over 60% compared to the same quarter of fiscal 2022 to $18.1 million.
• Net loss totaled $14.3 million compared to $38.6 million in the fourth quarter of last year.
• Adjusted EBITDA came in positive at $1.3 million, compared to an adjusted EBITDA loss of $0.6 million in the corresponding period of fiscal 2022.
• As of Dec. 31, 2023, the company had $17.4 million in total cash, $151.7 million in total assets, $44.1 million in total liabilities and a total debt of $0.9 million.

Co-CEO Bob Groesbeck shed light on the progress related to Plant 13's previously announced acquisition of Florida-based VidaCann and the expansion of its retail portfolio in Illinois.

“Towards the end of the quarter, we opened our new Illinois location and are working towards closing our acquisition of VidaCann and opening our consumption lounge at the Las Vegas SuperStore," Groesbeck said. "As we look to 2024, our goal is to prepare for the exciting potential of adult use in Florida and increase our scale, efficiency and operating leverage in core states to drive growth in operating cash flow and shareholder value.”

PLNH Price Action

Planet 13's shares traded 2.1132% higher at $0.72 per share at the time of writing on Wednesday.

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