Cansortium Inc. (OTCQX: CNTMF), a vertical multistate parent company that owns the Fluent brand, reported a 12% increase in revenue for the first quarter ending March 31, marking another period of double-digit growth and cash flow generation as it continues its expansion in Florida and Pennsylvania.
The company posted first-quarter revenue of $22.1 million, up from $19.7 million during the same period last year. Florida operations accounted for $18.2 million, a 9.7% increase compared to $16.6 million in the same period last year. Net loss totaled $7.4 million in the first quarter, an improvement versus $10 million last year.
Cansortium’s adjusted gross profit surged by 22% to $14.1 million, representing 63.9% of total revenue, versus last year’s $11.5 million, or 58.6% of revenue. Meanwhile, adjusted EBITDA rose 56% to $9.7 million, up from $6.2 million in the previous year.
In Florida, Cansortium launched a new dark chocolate bar product and announced plans to open between three to five new Fluent stores by the end of 2023, with three stores already under construction. The company also signed an agreement to acquire a property in Florida to build a 70,000-square-foot cultivation facility and a 2.5-acre greenhouse.
Additionally, Cansortium shared plans to relocate its headquarters from Miami to Tampa, Florida, with expectations to create more than 30 new jobs across various roles including administration, finance, human resources, marketing, sales, and operations.
The company has also been optimizing its inventory management and adding new products in Pennsylvania, resulting in increased sales without any new store openings.
While expressing disappointment at the outcome of proposed decriminalization and medical program expansion bills in Texas, CEO Robert Beasley remains optimistic about the growth opportunities in the state. The company chose to expand its operational footprint and delivery capabilities “to support patient populations” in Houston and Austin, even without regulatory reform.
“Looking ahead, we plan to continue driving growth and profitability through new store openings, improved cultivation, operating efficiencies, and inventory optimization as we execute our strategy and trend toward another year of strong growth and cash flow generation,” Beasley said in a statement.
As of quarter end, Cansortium reported having approximately $9.5 million in cash and cash equivalents and $57.9 million in total debt, with approximately 296 million shares outstanding.