Glass House Brands Inc. GLAS GLASF GHBWF reported its financial performance for the quarter ending September 30, 2023.
“The third quarter of 2023 was another highly successful quarter for the company as we achieved record levels of revenue and positive Adjusted EBITDA for the second consecutive quarter,” stated Kyle Kazan, co-founder, chairman and CEO. “We achieved record revenue of $48 million, largely driven by an increase in production, which grew 36% from Q3 2022 to over 101,000 pounds. This is quite impressive given we were able to accomplish this with the same cultivation capacity we had from last year.”
Key Highlights of Q3 2023
- Net Sales: $48.2 million, marking a striking 71% YoY increase and an impressive 8% sequential rise from Q2 2023.
- Gross Profit: $26.0 million, compared to $8.7 million in Q3 2022 and $24.4 million in Q2 2023.
- Gross Margin: 54%, up from 31% in Q3 2022 and 55% in Q2 2023.
- Adjusted EBITDA: $10.7 million, a significant improvement from $(2.7) million in Q3 2022 and $9.5 million in Q2 2023. The cumulative Adjusted EBITDA for 1-3Q 2023 reached $20.1 million, compared to $(18.8) million last year.
- Operating Cash Flow: $9.1 million, compared to $(8.2) million in Q3 2022 and $8.3 million in Q2 2023. The cumulative operating cash flow for 1-3Q 2023 reached $21.8 million, compared to $(31.5) million last year.
Moreover, the cost per equivalent dry pound of production was $118, representing a 12% decrease YoY and a 15% sequential decline versus Q2 2023. The equivalent dry pound production stood at 101,825 pounds, reflecting a robust 36% YoY increase. The cash balance reached $37.9 million at quarter-end, marking a commendable 67% rise from Q2 2023.
“On the production side, we achieved a record low of $118 per pound this quarter, and this accomplishment has given us even greater confidence that we are well on our way to achieving our goal of less than $100 per pound,” said Kazan. “Our outlook continues to be bright as we build upon the successes we have already achieved through the first three quarters of 2023.”
Operational Highlights of Q3 2023
- Glass House Brands participated in the ATB Capital Markets 2023 Life Sciences Investor Conference on September 20th.
- The company was also part of the AGP Virtual Consumer Cannabis Conference on October 4.
- The appointment of John A. Pérez to its Board of Directors was announced by the company.
- Element 7, APB, and GH Group entered into a Settlement and General Mutual Release Agreement.
- The appointment of Yelena Katchko to its board of directors was another noteworthy announcement.
Price Movement
GLASF shares were trading up 3.79%, at $4.65 per share on Monday afternoon.
Image by de m. On Unsplash
