Despite those positive financial results, the company still faced mounting expenses and a net loss.
Net revenue for the quarter rose by 14% to $25.3 million, compared to $22.1 million in the same period last year, primarily driven by its Florida operations, which saw a 17% increase in revenue.
The company’s adjusted EBITDA fell to $8.8 million from $11.7 million in the previous year. That decline was largely attributed to higher salary costs associated with staff expansion to support new store openings and other growth initiatives.
“In Florida, we continue to ramp our four new stores opened this year while driving cultivation improvements, leading to production of more high-quality, high-THC products,” CEO Robert Beasley said in a statement.
“Although the third quarter is generally the most challenging period of the year in Florida, these operating improvements have enabled us to command higher retail prices and partially offset lower volumes from the summer months in Florida.”
Beyond Florida, the company is extending its reach into Pennsylvania and is set to open a delivery center in Houston, Texas, early in 2024, looking to leverage its early market entry there.
The company’s cash flow from operations improved, registering $7.1 million versus $5.4 million in the same quarter last year. However, it also reported a net loss of $2.76 million for the quarter, which was an improvement from a $5.55 million loss in the prior year’s quarter.
Cansortium is currently managing a substantial debt load of $60.3 million, with around $12.1 million in cash and cash equivalents.
Key operational highlights include the opening of a new store in Jacksonville, Florida, increasing its total number of stores in the state to 33, with plans to open one more by the end of 2023.