💸 High Impact

Glass House Shows Continued Strength

The What - The second quarter of 2024 has presented a series of significant financial developments, showcasing the company’s resilience and capacity for growth in a dynamic market environment. The figures underscore the company’s continued progress, reflecting strong revenue generation, enhanced profitability, and improved cash flow.

Net Revenue for the quarter reached $53.9 million, marking a notable 21% increase compared to $44.7 million in the second quarter of 2023. This growth is even more pronounced when viewed sequentially, with a 79% rise from the $30.1 million reported in the first quarter of 2024. This substantial improvement highlights the company’s successful efforts to accelerate its revenue stream.

The Gross Profit for the quarter was $28.7 million, up from $24.4 million in the same period last year and significantly higher than the $12.5 million recorded in the first quarter of 2024. While the Gross Margin slightly declined to 53% from 55% in Q2 2023, this represents a significant recovery from the 42% margin reported in Q1 2024, indicating a positive trend in operational efficiency.

A key indicator of the company’s financial health, Adjusted EBITDA, was reported at $12.4 million for the quarter. This is a notable increase from $9.5 million in Q2 2023, and a remarkable turnaround from the negative $(1.6) million reported in Q1 2024. This improvement demonstrates the company’s ability to enhance profitability and effectively manage its operational expenses.

In terms of cash generation, the company reported an Operating Cash Flow of $8.9 million, up from $8.3 million in Q2 2023, and a significant improvement from the negative $1.9 million in Q1 2024. This positive cash flow underscores the company’s strengthened financial position and its ability to generate cash from its operations.

On the production front, the company reported Equivalent Dry Pound Production of 149,717 pounds, a 45% year-over-year increase. However, the Cost per Equivalent Dry Pound of Production rose by 6%, reaching $148. This increase in production costs reflects the company’s investment in scaling its operations to meet growing demand.

Finally, the company’s liquidity remains robust, with Cash, Restricted Cash, and Cash Equivalents totaling $25.9 million at the end of the quarter, compared to $24.4 million at the close of Q1 2024. This slight increase in cash reserves further solidifies the company’s financial stability as it moves forward.

📈 Dog Walkers

Curaleaf Opens Up In The Panhandle

Curaleaf Holdings, Inc. (TSX: CURA) (OTCQX: CURLF), a leading international cannabis provider, is expanding its Florida footprint with a new medical dispensary in Destin, marking its first in Okaloosa County. Opening on August 14, the Destin location increases Curaleaf's statewide presence to 64 dispensaries, contributing to a total of 150 nationwide. This strategic expansion aims to enhance patient access to a variety of cannabis products, including exclusive brands, and underscores the company's commitment to the Florida market as it supports Amendment 3 for adult-use cannabis legalization.

Acreage Holdings Posts Q2 Numbers

In Q2 2024, Acreage Holdings faced revenue and Adjusted EBITDA challenges due to credit constraints and the need to preserve cash, impacting retail inventory levels. However, the company secured $10 million through a brokered private placement and completed a recapitalization with a new credit facility. Acreage initiated inventory restocking in key states, showing promising retail sales improvement. Notably, non-medical sales began in Ohio, positioning Acreage to capitalize on the estimated $2.3 billion market. The company expanded its product portfolio with new launches and received approvals for dispensary relocations and permits, further strengthening its growth prospects.

Tilray Buys More Craft Brewers

Tilray Brands, Inc. (Nasdaq: TLRY; TSX: TLRY) has announced a definitive agreement to acquire four craft breweries from Molson Coors Beverage Company, including Hop Valley Brewing, Terrapin Beer Co., Revolver Brewing, and Atwater Brewery. This strategic acquisition will expand Tilray’s beverage portfolio, adding 30% more beer-buying accounts across key markets. The move aligns with Tilray’s growth strategy in the craft beer industry, aiming to drive revenue, achieve cost synergies, and reinforce its leadership position, ultimately delivering significant value for shareholders.

🗞️ The News

Glass House Brands Posts Another Strong Quarter Of Growth

Leaders In Washington State’s Capital City Pass Psychedelics Decriminalization Resolution

FDA Proposal To Allow Hemp Seed Meal As Food For Egg-Laying Hens Is Approved

Glass House Brands Reports Record Setting Second Quarter 2024 Financial Results

📺 YouTube

Cannabis Stocks: Organigram & Ascend Wellness on the Rise

What we covered:

✅ Organigram (NASDAQ: OGI) CEO Beena Goldenberg joins us to talk about their latest earnings and the main reasons why they beat analyst expectations.

For the quarter the cannabis company reported a 25% gain in net revenue growth, plus adjusted gross margin was 36%. Goldenberg will share the 3 key things that were the main reasons for the growth.

Plus, Ascend Wellness (OTC: AAWH) CEO John Hartmann joins us again on the podcast to talk about their announcement for Monday involving their agreement with Curio Wellness, vertically integrated cannabis company and market-leading innovator of health and wellness products.

Plus market performance on the day as to how MSOS performed, along with other cannabis stocks.