On March 14, 2024, Cannabist Company Holdings Inc (CBSTF, Financial), formerly known as Columbia Care Inc, released its 8-K filing, detailing its financial and operational performance for the fourth quarter and full year ended December 31, 2023. As a leading cultivator, manufacturer, and provider of medical cannabis products and services, Cannabist Company Holdings Inc markets a diverse range of products under various brands, catering to both medical and adult-use markets.
Financial Performance Overview
The company reported a stable revenue of $511.3 million for the year, mirroring the previous year's figures. However, gross profit saw a decline to $179.9 million in 2023 from $201.2 million in 2022. Adjusted gross margin also decreased to 37.9% from 42.4% year-over-year. Despite these challenges, Cannabist Company Holdings Inc managed to improve its net loss, reducing it significantly to $(174.3) million in 2023 from $(421.5) million in 2022. Adjusted EBITDA saw a modest increase to $69.6 million from $67.4 million in the previous year.
CEO David Hart acknowledged the company's efforts in maintaining revenue and implementing cost reduction programs, which led to improvements in Adjusted EBITDA and net loss over 2022. He also highlighted the retirement of $30.6 million of debt in the fourth quarter as a testament to the team's accomplishments during a challenging year.
Strategic Focus and Operational Highlights
Looking ahead, Cannabist Company Holdings Inc is focusing on improving operations and leveraging investments in cultivation and manufacturing facilities. The company aims to optimize its retail footprint and capitalize on growth opportunities in markets transitioning to adult use. Hart expressed confidence in the team's resilience and passion, which are crucial for driving shareholder value over the mid-term.
The company's top five markets by revenue in Q4 were Colorado, Maryland, New Jersey, Ohio, and Virginia, while the top five markets by Adjusted EBITDA were Delaware, Maryland, New Jersey, Ohio, and Virginia.
Financial Statements and Metrics
Key details from the financial statements reveal that Cannabist Company Holdings Inc ended the year with $35.8 million in cash, a decrease from $48.2 million in the previous year. Total assets stood at $823.1 million, down from $994.7 million in 2022. The company also managed to reduce its total liabilities from $787.8 million to $757.8 million.
Adjusted EBITDA margin for the year was 13.6%, slightly higher than the 13.2% reported in 2022. The net loss per common share improved to $(0.43) in 2023 from $(1.06) in the previous year.
"We began 2024 with renewed focus as The Cannabist Company. We are committed to continuously improving our operations and leveraging the investments that we have made in cultivation and manufacturing facilities by shifting the wholesale mix toward finished goods and engaging in strategic partnerships," said David Hart, CEO of The Cannabist Company.
Investors and stakeholders are encouraged to review the detailed financial statements and management's discussion and analysis to gain a comprehensive understanding of Cannabist Company Holdings Inc's performance and future prospects.
For further information and to access the conference call discussing these results, please visit the Investor Relations section of the company's website.
Explore the complete 8-K earnings release (here) from Cannabist Company Holdings Inc for further details.
