Cansortium (OTC:CNTMF) Inc., a leading medical cannabis company, reported significant growth in its third-quarter 2023 earnings call, with record revenue and cash flow generation. The company also marked its eighth consecutive quarter of positive cash flow from operations, driven by strategic initiatives and consistent business performance.
Key highlights from the call include:
- Revenue growth of 17% in Florida, driven by the ramping up of four new stores opened in 2023.
- Plans to open one additional store in Florida by the end of the year and another in early February 2024.
- Continued improvement in flower quality, with average THC percentage now above 26%.
- Revenue increased 14% in Q3 to $25.3 million compared to $22.1 million in the year-ago quarter, primarily due to additional dispensaries in Florida and higher patient counts.
- Q3 operating expenses were $11.7 million, up from $8.5 million in the previous year, primarily due to increased salaries and wages for new stores in Florida.
- Adjusted EBITDA for Q3 was $8.8 million, down from $11.7 million, primarily due to additional salaries and wages and lower average ticket per transaction.
- Cash from operations during the third quarter increased 32% to a record $7.1 million compared to $5.4 million in the prior year period.
CEO Robert Beasley emphasized the company’s commitment to driving profitable growth across its footprint and expanding geographically. CFO Jeff Batliner highlighted the company’s financial performance, noting the eighth consecutive quarter of positive cash flow from operations.
The company also discussed its cultivation expansion plans in Florida and its efforts to grow its presence in Texas, where it is one of only three license holders. Beasley expressed optimism about the company’s growth prospects despite potential regulatory challenges.
Cansortium, listed as CSE:TIUM.U, operates under the Fluent™ brand and is dedicated to providing patients with consistent, high-quality medical and wellness cannabis products.
