Ayr Wellness Inc. Reports Q1 2024 Financial Performance

LOS ANGELES- Ayr Wellness Inc., a vertically integrated U.S. multi-state cannabis operator, has reported significant financial advancements in the first quarter of 2024, underscoring its commitment to sustainable and profitable growth. The company aims to solidify its position as an industry leader through continuous efforts in product quality improvement and strategic cost control measures.

Financial Performance Highlights

In Q1 2024, Ayr Wellness demonstrated a steady upward trend in key financial metrics. The company’s revenue increased by 3% quarter-over-quarter, reaching $118.0 million, excluding discontinued operations. This growth reflects their focus on reinforcing customer loyalty and enhancing overall product consistency.

A substantial rise in Adjusted EBITDA was a highlight, climbing over 10% year-over-year to $29.1 million, equating to an adjusted EBITDA margin of 25%. Additionally, the company generated positive free cash flow for the quarter and remains optimistic about maintaining this trajectory throughout FY2024.

David Goubert, President and CEO of Ayr Wellness, emphasized the importance of execution in 2024. He highlighted the firm’s progress made in 2023, particularly in improving product quality and cultivating a loyal retail customer base. The company’s efforts to rebuild its consumer packaged goods (CPG) brand platform and uphold stringent cost controls reflect its long-term business strategy.

In February 2024, Ayr Wellness completed a series of debt restructuring transactions as part of a Support Agreement from November. This restructuring successfully deferred the maturity of nearly one billion dollars in senior notes by two years and raised approximately $100 million through the issuance of new senior notes set to mature in December. Additionally, the company issued new shares and anti-dilutive warrants, expected to generate further proceeds upon exercise. These measures demonstrate Ayr’s proactive approach to managing its capital structure to support long-term growth and stability.

Looking Ahead

With a robust asset base and favorable regulations, Ayr Wellness is poised for meaningful, sustainable, and profitable financial growth. Goubert and his team are committed to refining operations and strategic initiatives, positioning the company for accelerated growth within the burgeoning cannabis sector.

The company’s optimism for FY2024 and beyond is rooted in the successful implementation of strategic initiatives aimed at strengthening its market position. Despite industry challenges, Ayr Wellness views these as opportunities to demonstrate resilience and adaptability, which are critical for long-term success.