AWH Announces First Quarter 2024 Financial Results
- Net revenue of $142.4 million in Q1 2024, up 25% year over year and up 2% sequentially
- Adjusted EBITDA was reported at $32.5 million, an increase of 39% year over year.
- Positive cash obtained from operating activities
NEW YORK , May 7, 2024 /PRNewswire/ – Ascend Wellness Holdings, Inc. (“AWH” or the “Company” or “Ascend”) (CSE: AAWH.U) (OTCQX: AAWH), a vertically integrated multi-cannabis company The state’s cannabis operator, focused on improving lives through innovation, today reported its financial results for the three months ended March 31, 2024 (“First Quarter 2024”). Financial results are reported in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) and all currencies are expressed in U.S. dollars.
Financial Highlights for Q1 2024
- Total revenue increased 23.4% year over year and 0.6% sequentially to $174.2 million.
- Net revenue, excluding intercompany sales of wholesale products, increased 24.7% year over year and 1.6% sequentially to $142.4 million.
- Retail revenue increased 15.1% year over year and decreased 2.2% sequentially to $95.2 million.
- Total wholesale revenue increased 35.2% year over year and 4.2% sequentially to $79 million. Wholesale revenue, excluding intercompany sales, increased 50.2% year over year and 10.2% sequentially to $47.2 million.
- Net loss was $18.2 million in the quarter compared to $18.5 million in the first quarter of 2023.
- Adjusted EBITDA¹ was $32.5 million and margin was 22.8%. Adjusted EBITDA increased 39% and margin improved 239 basis points year over year. Adjusted EBITDA improved 0.4% sequentially, and adjusted EBITDA margin was essentially unchanged sequentially.
- As of March 31, 2024, we had cash and cash equivalents of $72.9 million and net debt² of $237.6 million.
- Operating cash flow generated $3.9 million, marking the fifth consecutive quarter of positive operating cash flow.
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¹Adjusted EBITDA/Margin and Adjusted Gross Profit/Margin are non-GAAP financial measures. See “GAAP Reconciliations” at the end of this release.
²Total debt, cash and cash equivalents less unamortized deferred cost of funds.
Business highlights
In the first quarter of 2024, we opened two pharmacies in Cincinnati, Ohio and Monaca, Pennsylvania, bringing the total number of pharmacies we operate across our network to 36.
We have secured operating agreements with two additional partner pharmacies, bringing the total number of partner stores in our pipeline to four.
A second cultivation and manufacturing facility comes online in Massachusetts, bringing the total number of facilities to seven and providing 255,000 square feet of usable canopy area. Further development is underway at this facility, with plans to expand the total cultivation area of the portfolio to his 260,000 square feet.
We have entered into two long-term supply agreements in Maryland, providing both AWH and third-party branded products to serve retail and wholesale customers in the state.
Management commentary
I would like to thank all of our stakeholders for their dedication to delivering a strong first quarter. The company delivered an impressive 25% year-over-year revenue growth, complemented by a 39% increase in adjusted EBITDA, which expanded its adjusted EBITDA margin by 239 basis points year-over-year.
John Hartman, Chief Executive Officer
This quarter marked the fifth consecutive quarter of growth in our total wholesale sales. These results reflect the hard work of our team and confirm our commitment to operational excellence and financial health.
“We got off to a strong start in the first quarter of this year, as evidenced by our fifth consecutive quarter of operating cash generation. This consistent performance reflects our strong execution across multiple markets. Our financial outlook for the remainder of this year is optimistic, with revenue expected to increase by approximately 12% to 15% and adjusted EBITDA to increase by approximately 17% compared to 2023. “We are targeting full-year operating cash of between $55 million and $65 million,” said Mark Kassebaum, chief financial officer.
original press release
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