Q2 2024 Cannabist Company Holdings Inc Earnings Call Transcript
Key Points
- Cannabist Company Holdings Inc (CBSTF) achieved $125.2 million in revenue for Q2 2024, marking a 2% increase from the previous quarter.
- The company successfully implemented a corporate restructuring that is expected to generate $10 million in annual cost savings.
- Wholesale revenue increased by 24% over the first quarter, now representing 15% of total revenue, with improved gross margin discipline.
- The company is strategically exiting non-core and underperforming markets, such as Florida and Arizona, to focus on more profitable regions.
- Cannabist Company Holdings Inc (CBSTF) is well-positioned for growth in key markets like Ohio, New Jersey, Delaware, and Virginia, with plans to expand retail locations and capitalize on adult-use transitions.
- The company experienced a slight decline in gross margin due to discounting and an increasing revenue mix from lower-margin wholesale business.
- There is an ongoing impact from unabsorbed overhead in underutilized production facilities, affecting gross margins.
- Cannabist Company Holdings Inc (CBSTF) reported negative cash flow from operations, although it showed improvement over the previous quarter.
- The company is still facing challenges in certain markets like New York, where the adult-use transition has not fully taken off.
- Cannabist Company Holdings Inc (CBSTF) is undergoing significant structural changes, which may lead to short-term disruptions as it rationalizes its geographic footprint.
Good day and thank you for standing by. Welcome to the Cannabist Company Q2 2024 earnings call. At this time, all participants are listen-only mode. After the speakerâs presentation, there will be a question-and-answer session. (Operator Instructions) Please be advised that todayâs conference is being recorded.
I would now like to hand the conference over to your speaker today, Lee Evans, Senior Vice President Capital Markets. Please go ahead.
Thank you. Good morning and thank you for joining the Cannabist Companys' second quarter 2024 earnings conference call. With me today are Chief Executive Officer, David Hart; President, Jesse Channon; and Chief Financial Officer, Derek Watson.
Earlier this morning, we issued a press release reporting our second quarter 2024 results. A copy of this release is available on the Investors section of our corporate website, where you will also be able to access a replay of this call for up to 30-days.
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