Vibe Growth Cannabis Mixed Q3 Results: Gains In Efficiency, Losses In Revenue

Vibe Growth Corp VIBEF, a California-based vertically integrated cannabis company, reported its financial results Thursday for the third quarter of 2023.

Q3 2023 Financial Highlights

• Revenue for the quarter was $3.39 million, compared to the $3.69 million in the previous quarter, marking an 8.1% decline.
• Net loss for the quarter was approximately $1.34 million, similar to the loss in the same period in 2022.
• Adjusted EBITDA was $281,672, in sharp contrast to the losses reported in the second quarter of 2023.
• Gross profit was not reported in the earnings announcement.

Vibe‘s cash position stood at $2.8 million as of September 30, 2023. A notable improvement was seen in the dispensary gross margin, which increased to 49.7% for the quarter, up from 33.6% in the same period of 2022. This increase is also reflected in the nine-month performance, showing a rise to 41.9% from 36.6% in the previous year.

Despite the declining revenue, the company reported a positive EBITDA of $1.17 million for the quarter, a turnaround from an EBITDA loss in Q2 2023. The Adjusted EBITDA for the third quarter was also positive at $282 thousand, indicating a recovering financial health.

CEO's Perspective

The company's growth was attributed to strategic changes, including centralized purchasing and internal distribution, stated CEO Mark Waldron.

"We’ve launched several new Hype products and continue to focus our marketing efforts on supporting the new product launches and Vibe continues to implement cost reductions by reducing head office staffing levels,” said Waldron.

VIBEF Price Action
VIBEF's shares were trading at $0.021 per share at the time of this writing around 2:30 PM ET Thursday.

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