Cansortium Reports Q1 2023 Results with Revenue Growth and Increased Profitability

LOS ANGELES– Cansortium Inc., a vertically-integrated multi-state cannabis company operating under the FLUENT™ brand, has reported its financial and operating results for the first quarter ended March 31, 2023. The company showcased a 12% year-over-year increase in revenue to $22.1 million, while adjusted EBITDA rose by 56% to $9.7 million. Cash flow from operations also saw a boost of 20% to $5.1 million during the same period.

CEO Robert Beasley expressed satisfaction with the company’s performance, highlighting the double-digit revenue growth and expanded adjusted EBITDA margin despite challenges faced by the broader industry. Cansortium’s growth and profitability improvements in Florida were attributed to new store openings, cultivation enhancements, and an increased focus on high-THC products. The company also noted improved sales in Pennsylvania due to optimized inventory management and expanded product offerings.

In Texas, although Cansortium expressed disappointment regarding the outcome of proposed decriminalization and medical program expansion bills, it remains optimistic about the growth potential in the state. The company is actively capturing market share and believes Texas presents a significant opportunity, similar to the Florida market several years ago.

Moving forward, Cansortium plans to sustain growth and profitability through new store openings, enhanced cultivation practices, operational efficiencies, and inventory optimization. The company aims to continue executing its strategy, positioning itself for another year of robust growth and strong cash flow generation.

In terms of operational highlights, Cansortium currently operates 31 stores in Florida and anticipates opening an additional 3-5 stores by the end of 2023. It recently launched a new Dark Chocolate Bar infused with FLUENT’s high-quality cannabis extract and Valrhona’s Caraïbe 66% chocolate. The company has also entered into an agreement, subject to financing, to acquire a property in Florida for the establishment of a new 70,000 square foot cultivation facility and a 2.5-acre greenhouse.

Additionally, Cansortium announced plans to relocate its headquarters from Miami to Tampa, Florida. This move is expected to create over 30 new jobs across various key roles, including administration, finance, human resources, marketing, sales, and operations.

Cansortium’s progress in Texas involves expanding its operational footprint and working towards enhancing delivery capabilities to support patient populations in Houston and Austin.

With approximately $9.5 million in cash and cash equivalents and $57.9 million in total debt as of March 31, 2023, Cansortium currently has around 296 million shares outstanding.