'Best Q2 in Our History' Glass House Brands Reports Record Results, Gross Margin Above 50%

Glass House Brands Inc. GLASF GHBWF, a vertically integrated cannabis company in the U.S., released Monday its financial results for the second quarter concluding on June 30, 2023.

"The best Q2 in our history. Record cash flow, positive EBITDA," Kyle Kazan, co-founder, chairman and CEO of Glass House stated in a press release. "In Q2 2023, biomass revenues and pounds sold quadrupled year-over-year. Retail dispensary revenues doubled to $10M due to acquisitions. The gross margin exceeded 50%, and the cultivation cost per pound fell 12%. Adjusted EBITDA flipped to +$9.5M from -$9.8M last year.

"Our vertical integration and cost-efficient cultivation are key. We're confident in ongoing momentum through 2023, surpassing guidance," Kazan said.

GHB Reports Profit Growth in Q2 2023

Net sales surged by 171%, reaching $44.7 million, as compared to $16.5 million in Q2 2022. Sequentially, the company experienced a 54% uptick from the previous quarter's $29.0 million.

Gross profit marked a significant rise, totaling $24.4 million in contrast to the modest $0.3 million recorded in Q2 2022 and $12.0 million in Q1 2023.

Meanwhile, Glass House reported its Gross margin soared to 55%, a contrast from the 2% reported in Q2 2022 and the 41% in Q1 2023. The company reported a turnaround in adjusted EBITDA, reaching $9.5 million, which marked an improvement from the $(9.8) million reported in Q2 2022 and $(0.1) million in Q1 2023.

Efficiency, Cash, And Growth Metrics In Q2 2023

• Glass House reported increased operational efficiency, with a 12% reduction in cost per Equivalent Dry Pound of Production compared to the previous year and a 29% decrease sequentially from Q1 2023.
• The Equivalent Dry Pound Production experienced a 311% year-over-year surge, reaching 103,336 pounds.
• The company reported a cash balance of $22.7 million at the end of the quarter -a 39% growth from the Q1 2023 quarter-end balance.
• Price Action: GLASF stocks were trading higher by 0.82% at $3.71 per share after the market close on Monday evening.

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Rudy and Peter Skitterians en Pixabay.