AYR Wellness 2023 Financial Harvest: 10% Revenue Boost & Adjusted EBITDA Jumps 51%

AYR Wellness Inc. AYRWF AYR, a multi-state cannabis operator, revealed Wednesday its financial outcomes for Q4 and the entirety of 2023. The company reported a 10% revenue increase to $463.6 million and a significant uptick in adjusted EBITDA by 51% to $114.0 million.

Q4 2023 Financial Highlights

• Revenue was $114.8 million, a 0.4% increase compared to the same period last year
• Net loss was $28.3 million, decreasing from $163.4 million in Q4 2022
• Adjusted EBITDA increased 23.1% to $29.8 million, compared to Q4 2022
• Gross profit was $49.4 million, decreasing 6.8% compared to same quarter last year

Full 2023 Financial Highlights

• Revenue was $463.6 million, a 10% increase compared to the previous fiscal year
• Net loss was $272.4 compared to net loss of $245.5 million for FY 2022
• Adjusted EBITDA increased 51% to $114.0 million, compared to FY 2022
• Gross profit increased 15.7% year-over-year to $202.4 million

Despite the competitive cannabis market, AYR’s strategic maneuvers have borne fruit. The firm notably improved its GAAP loss from operations to $37.2 million. This achievement is underscored by a solid Adjusted EBITDA margin of 25%, pointing to enhanced profitability and operational leverage.

CEO Commentary

Reflecting on the company's performance, David Goubert, president and CEO of AYR emphasized the significance of the past year’s achievements.

"2023 was a transformational year for AYR as we executed on our financial and operational goals — growing revenue, enhancing profitability, and strengthening our balance sheet. We grew revenue 10%, grew Adjusted EBITDA by 51%, expanded Adjusted EBITDA margins to 25%, and generated positive cash flow from operations for 2023,” Goubert stated. “Additionally, in February 2024, we completed the deferral or retirement of nearly $400 million of debt maturities and now have a clear financial runway to focus on our optimization efforts as we look to capitalize on multiple industry catalysts ahead.”

Company Outlook

As AYR looks to 2024, it projects steady growth, with an emphasis on overcoming cultivation challenges and boosting wholesale revenues. The company’s focus remains on driving revenue, Adjusted EBITDA, and operating cash flow.

AYRWF Price Action
AYRWF's shares were trading 5.89% higher at $1.763 per share at the time of this writing around 10 AM ET Wednesday.

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Photo: Courtesy of Ayr Wellness Inc.