Q2 2024 Ascend Wellness Holdings Inc Earnings Call Transcript
Key Points
- Ascend Wellness Holdings Inc (AAWH) reported a 15% year-over-year increase in revenue, reaching $141.5 million, and a 33% rise in adjusted EBITDA to $28.3 million.
- The company achieved positive cash flow from operations for the sixth consecutive quarter, generating $14 million in Q2.
- Ascend Wellness Holdings Inc (AAWH) successfully refinanced its term loan, securing $235 million in senior secured notes, enhancing financial flexibility.
- The company opened two new dispensaries and supported partners in opening two additional dispensaries in Illinois, expanding its retail footprint.
- Ascend Wellness Holdings Inc (AAWH) reported a 46% year-over-year growth in net wholesale revenue, driven by strong market penetration in Illinois, Massachusetts, and New Jersey.
- Wholesale profitability in the Massachusetts market declined, impacting overall financial performance.
- Increased competition in key markets like Illinois, New Jersey, and Massachusetts led to a sequential decline in retail revenue.
- Adjusted gross profit margins dropped by 635 basis points to 37.5% of revenue, driven by margin reductions in the wholesale business.
- The company faced challenges with product mix and increased discounting in the Massachusetts market, affecting profitability.
- Ascend Wellness Holdings Inc (AAWH) had to implement a reduction in headcount to streamline operations and address profitability declines.
Good morning and thank you for standing by. Welcome to AWH's second quarter 2024 earnings call. I'd now like to hand the conference over to your first speaker today, Rebecca Koar, Executive Vice President of Investor Relations and Strategy. Please go ahead.
Good morning and welcome to AWH's earnings call for the second quarter of 2024. The presentation that accompanies this call can be found on the investor relations section of our website. Before we proceed, I would like to remind you that the following discussion and presentation contains various forward-looking statements or information. These forward-looking statements or information are subject to risks and uncertainties that may cause actual results to differ from historical or anticipated results.
For more information on these risks and uncertainties, please refer to slide 2 of this presentation, today's earnings release, and our SEC and SEDAR filings, including our most recent report
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