HomeMarket NewsMicro Cap StocksFlourishing Cansortium Inc.: Financial Report Shows Colossal Growth, Revenue Soars

Flourishing Cansortium Inc.: Financial Report Shows Colossal Growth, Revenue Soars

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Cansortium Inc. TIUM CNTMF, a vertically-integrated, multi-state cannabis company operating under the FLUENT brand, has reported robust financial and operating results for the third quarter ended September 30, 2023.

While addressing the company’s performance, CEO Robert Beasley mentioned, β€œWe achieved record-breaking revenue and cash flow in the third quarter, despite the customary languor in Florida. Increased spending on new store openings dampened our Adjusted EBITDA, but these investments are indispensable for future growth and expansion.”

See Also: Florida’s Cannabis Market Shows Robust Growth: Analyst Examines Who’s On The Rise Amid Changing Landscape

Thriving in Q3 2023

  • Revenue Growth: The company witnessed a staggering 14% surge in revenue, totaling $25.3 million, compared to $22.1 million in Q3 2022.
  • Flourishing Florida: Revenue from Florida magnificently rose by 17% to $21.3 million from $18.2 million in Q3 2022.
  • Profit Progress: Q3 2023 recorded an adjusted gross profit of $16.1 million, contributing to 63.9% of revenue. In contrast, Q3 2022 achieved a $16.7 million profit, representing 75.5% of revenue.
  • Adjusted EBITDA: This quarter concluded with an $8.8 million EBITDA, marking a decrease from the previous year’s $11.7 million. The team attributed this decline to additional wages and a decrease in average transaction value, which was offset by heightened customer transactions, as highlighted in a press release.

Cash Flow and Financial Position

The cash flow from operations for the three months ending September 30, 2023, showed substantial improvement, amounting to $7.1 million compared to $5.4 million in the prior year.

September 30, 2023: The company held approximately $12.1 million in cash and cash equivalents, with a total debt of $60.3 million and an outstanding share count of around 298 million.

Recent Operational Highlights

In Florida, Cansortium launched its Jacksonville – Cassat store, elevating the operational store count to 33.

The company plans to open one more store in Florida by the year’s end.

Beasley stated, β€œIn Florida, we continue to escalate operations in our four new stores and enhance cultivation to yield superior, high-THC products. Although the third quarter typically poses challenges in Florida, our operational refinements have empowered us to command higher retail prices and counterbalance the summer volume plunge.”

The company is keen on improving its presence in Florida and Pennsylvania, seizing the opportunity as the first mover in Texas, where plans to inaugurate a brick-and-mortar delivery center in Houston in early 2024 are underway, Beasley concluded.

Price Action

During the time of writing this article on Wednesday, Cansortium Inc. (CNTMF) shares exhibited a decrease of 20.41%, trading at $0.078 per share.

Read Next: Cannabis Industry Changes As Marijuana Rescheduling Looms

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