Glass House Brands: Q3 Revenue Increases 72% Sequentially To $28.3M

Glass House Brands Inc. GLASF GHBWF GLAS GLAS, one of the fastest-growing, vertically integrated cannabis companies in the U.S., reported financial results for its third quarter ending September 30, 2022.

Third Quarter 2022 Financial Results

• Reports record quarterly revenue of $28.3M, up 72% from Q2 2022
• Biomass production up 164% year-on-year and biomass revenue increased 180% year-on-year
• Record low quarterly cost per pound of $134, down 15% sequentially2
• A gross margin of 31%, increases from 2% in Q2 2022 and more than double the year-earlier level
• Raised $22.5 million of new capital to date
• Q4 Revenue guidance reduced to $30–$32 million
• The target for Free Cash Flow positive operations excluding expansion Capex at the SoCal Farm3 revised to Q3 2023 from Q1 2023

Conference Call to be Held November 10, 2022, at 5:00 p.m. ET

Third Quarter 2022 Highlights

“Net Sales of $28.3 million increased 65% from $17.2 million in Q3 2021 and 72% sequentially from $16.5 million in Q2 2022,” reported New Cannabis Ventures.

Gross Profit was $8.7 million compared to $2.3 million in Q3 2021 and $0.3 million in Q2 2022.

Gross Margin was 31%, compared to 14% in Q3 2021 and 2% in Q2 2022.

Additionally, Adjusted EBITDA was $(2.7) million, compared to $(5.4) million in Q3 2021 and $(9.8) million in Q2 2022.

“Cost per Equivalent Dry Pound of Production1,2 was $134 a decrease of 25% compared to the same period last year and down 15% sequentially versus Q2 2022 (...) Equivalent Dry Pound Production1 was 74,624 pounds, up 164% year-over-year and 196% sequentially,” per a company press release.

Cash balance was $17.5 million at quarter-end, up slightly from Q2 2022 quarter-end.

Third Quarter 2022 Operational Highlights

The company completed the Acquisition of the Remaining Equity Ownership in The Pottery Dispensary and also formed a genetics and nursery partnership with Seed Junky.

The Value Cannabis Brand from Glass House Brands, Allswell, launched the First-Ever Line of Vegan Cannabis Gummies.

Glass House closed the Initial Tranche of Non-Brokered Private Placement of Equity Securities

The company closed Grover Beach and Lemoore Natural Healing Center Dispensary Acquisitions and closed Morro Bay Natural Healing Center Dispensary Acquisition.
Kyle Kazan, co-founder, chairman and CEO of Glass House said: “We believe that we own and operate the best and most efficient cannabis greenhouse in the US at 5.5 million square feet in size, of which 1.5 million square feet is planted and in production.”

Kazan added they are excited to “show conclusive evidence that we own the unicorn of greenhouses. In the third quarter, and the first full quarter of cultivation and harvesting at the SoCal farm, we grew biomass production by 164% year-over-year and equivalent dry pounds sold by 265% to approximately 69,000 pounds.”

During the third quarter, the company raised $19.5 million in new capital and facilitated the exchange of $22.7 million of existing Series A Preferred Stock for new Series B Preferred Stock.

Get your daily dose of cannabis news on Benzinga Cannabis. Don’t miss out on any important developments in the industry.

Photo: Courtesy Of Alexander Schimmeck On Unsplash