Glass House Brands Inc. GHBWF, a vertically integrated cannabis firm in California, revealed an impressive 89% surge in annual revenue to $160.8 million, achieving a new milestone in its financial performance.
The company’s fourth-quarter revenue rose by 35% to $40.4 million, marking the fourth consecutive quarter of positive adjusted EBITDA, which reached $3.8 million.
Kyle Kazan, co-founder, chairman, and CEO of Glass House, credited the remarkable performance to the dedicated team and sustainable growth strategies implemented by the company. He highlighted the substantial growth in gross profit and operational improvements achieved throughout 2023.
The success story of Glass House underscores the company’s solid market presence and operational efficiency, with gross profit doubling to $18.0 million in Q4, a significant improvement from the previous year’s $9.2 million. The gross margin also showed remarkable progress, increasing to 45% from 31% in Q4 2022.
In a strategic move to enhance its operational capacity, Glass House managed to increase biomass production by 37% in Q4 without expanding its cultivation footprint, yielding a total of 103,500 pounds. The company also succeeded in decreasing its cost per equivalent dry pound of production by 5% to $121, leading to a notable enhancement in operating cash flow, which amounted to $23.2 million for the year, in stark contrast to the $40.8 million deficit reported in the previous year.
With the recent commencement of cultivation in Greenhouse 5, Glass House is set for sustained growth, expecting to increase its annual capacity by over 70%. The company anticipates Q1 2024 revenue to range between $28 million and $29 million, with a robust revenue guidance of $215 to $220 million for the full year 2024, targeting an Adjusted EBITDA surpassing $50 million.
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