Abu Hanifah
Jushi Holdings (OTCQX:JUSHF) shares fell ~13% indicating the fifth straight session of losses on Friday after the multi-state cannabis operator’s Q1 2023 revenue stood below Street forecasts amid an ongoing cost savings plan.
The company recorded $69.9M revenue for the quarter compared to ~$74.3M in the consensus, with ~13% YoY growth mainly due to a $4.4M rise in its retail revenue while wholesale revenue expanded by $3.7M.
Driven by Jushi’s (OTCQX:JUSHF) cost savings and efficiency optimization plan, operating expenses fell ~13% YoY to $32.5M, narrowing net loss by ~37% YoY to $12.4M while gross margin improved to ~43% from ~31% in the prior year period.
“In the first quarter, our efficiency and cost savings plan resulted in very encouraging improvements to our margins and profitability,” Chief Executive Officer Jim Cacioppo said, highlighting the company’s plans to reduce expenses further.
“….we continue to make upgrades throughout our grower-processor footprint to drive operational efficiencies for further savings throughout the remainder of the year,” he added.
The company ended the quarter with $18.5M in cash and cash equivalents compared to $26.2M in 2022 year-end, and the management expects Jushi (OTCQX:JUSHF) to bring positive operating cash flows for debt repayments by Q4 2023.
