Q1 2024 Glass House Brands Inc Earnings Call Transcript
Key Points
- Revenue for Q1 2024 was $30.1 million, surpassing the guidance of $28 million to $29 million.
- Production exceeded expectations with over 61,300 pounds of biomass produced, 28% higher than the same quarter last year.
- Cost per pound was $182, 7% below the same period last year and below guidance of $185.
- The launch of the Allswell brand and strategic pricing plan significantly boosted retail and own brand sales, making Allswell the most consumed cannabis brand in California in April.
- Glass House Brands Inc successfully managed the operational challenges of turning on production at Greenhouse 5 while maintaining cultivation at other facilities.
- Adjusted EBITDA was negative $1.6 million, although better than the projected negative $2 million to $4 million.
- Operating cash flow was negative $1.9 million, despite being ahead of the guided negative $3 million to negative $4 million.
- The average selling price per pound decreased to $282 from $290 per pound in the first quarter of last year.
- Retail gross margin declined to 53% in Q1 from 54% in the previous quarter, with expectations of further reductions.
- The company faces challenges from high competition and pricing pressure in the retail and wholesale CPG space, potentially worsening throughout 2024.
Good afternoon, ladies and gentlemen, and thank you for standing by. Welcome to the Glass House Brands First Quarter 2024 Investor Call.
I would now like to turn the conference over to Mr. John Brebeck, Glass House Brand's Vice President of Investor Relations. Please go ahead, sir.
Thank you, operator. Welcome, everyone, to the Glass House Brands First Quarter 2024 Conference Call for the period ending March 31, 2024. I'd like to remind everyone that matters discussed during today's conference call could constitute forward-looking statements that are subject to the risks and uncertainties relating to Glass House Brand's future financial or business performance. Actual results could differ materially from those anticipated in those forward-looking statements. The risk factors that may affect results are detailed in Glass House brands periodic filings and registration statements. These documents may be accessed via the SEDAR plus database. I'd also like to remind everyone that this call is being recorded
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