Multi-state, vertically integrated cannabis operator AWH has announced its robust financial results for the second quarter of 2023. The company reported a record quarterly revenue of $123.0 million, marking a 26.1% increase year-over-year and a 7.7% rise quarter-over-quarter, providing positive operational cash flow for the second consecutive quarter.
Key highlights from the Q2 2023 financial results included gross revenue soaring by 28.4% compared to last year at a total of $151.0 million, along with net revenue increasing by 26.1% year-over-year (excluding intercompany sales) to reach $123.0 million. Full-year 2023 adjusted EBITDA reached an impressive $21.3 million.
Expanding Operations Support Vigorous Growth
As of June 30, 2023, AWH maintained cash and cash equivalents worth $68.0 million while holding a net debt of $241.8 million. In the same period, the company expanded operations by acquiring four dispensaries in Maryland, extending AWH’s presence into a seventh state with 31 operating dispensaries across all states combined.
Company leadership expressed significant satisfaction in meeting another milestone of record revenue and cash generation, attributing it to growth in their business’s retail and wholesale sectors. Management remains optimistic about future growth, mainly through the retail outlet model as AWH enters Maryland’s burgeoning adult-use market.
Generating Cash Flow a Key Pillar of Operational Strategy
Demonstrating its commitment to generating cash flow, AWH revealed it produced nearly $8 million from operations during Q2 2023 (excluding employee retention tax credits). The company intends to hit the target of generating cash from operations throughout the entire year.
Key Financial Overview for Q2
The net revenue growth of 7.7% quarter-over-quarter was driven by increasing results in both retail and wholesale businesses. Total retail revenue came in at $89.9 million, bolstered by factors such as new dispensary openings and acquisitions. Gross profit for the second quarter equaled $28.3 million – or 23% of total revenue – compared to a higher percentage from Q1 gross profit at $35.7 million (31/3% of revenue).
Total general and administrative expenses for Q2 were reported at $36.3 million, with G&A expenses as a percentage of revenue showing improvement from the prior quarter.
Net income for the period reached $0.8 million, partly due to the employee retention tax credit recognition. Adjusted EBITDA for Q2 amounted to $21.3 million.
Further Information on AWH Q2 2023 Results
To access more details on AWH’s performance in the second quarter of 2023, stakeholders may consult the company’s website or visit the SEC and SEDAR platforms, where additional information is available. With consistent record revenues and rapid expansion into new territories, AWH’s future remains promising in an increasingly competitive industry landscape.
Rita Ferreira
Rita is a seasoned writer with over five years of experience, having worked with globally renowned platforms, including Forbes and Miister CBD. Her deep knowledge of hemp-related businesses and passion for delivering accurate and concise information distinguish her in the industry. Rita's contributions empower individuals and companies to navigate the complexities of the cannabis world, and her work remains a valuable resource for those seeking a deeper understanding of its potential.
