Cansortium Inc. (CSE: TIUM.U) (OTCQX: CNTMF), a cannabis company that operates under the Fluent brand, reported a 9% increase in its second-quarter revenue ending June 30, reaching $24.4 million versus $22.4 million in the same quarter last year.
But the revenue figure missed Seeking Alpha’s analyst expectations by $1.6 million despite the increase. The company’s net loss fell to $5.35 million versus $12 million in the same period the year before.
The rise in revenue is attributed to organic growth and new store openings in Florida. Cansortium opened four new stores in Florida this year and plans to open a few more by year’s end.
“We continued to drive revenue growth and cash flow generation during the second quarter through a combination of organic growth as well as new store openings in Florida,” CEO Robert Beasley said in a statement.
Despite the improvements, the company saw a decline in adjusted EBITDA, dropping from $10.2 million in the second quarter last year to $8.6 million this quarter.
However, the company said that the decrease in adjusted EBITDA is primarily due to increased selling, general, and administrative expenses related to new store openings. Cash flow from operations also fell to $4.8 million versus $5.8 million in the same period last year.
Cansortium had approximately $8.8 million in cash and cash equivalents and $59.3 million of total debt by the end of the second quarter, with approximately 298 million shares outstanding.
In addition to its financial results, the company announced a few operational highlights. John Mazarakis was appointed to the board of directors, bringing over 25 years of entrepreneurial, operational, and managerial experience to Cansortium. The company also relocated its headquarters from Miami to Tampa, Florida, and expects to create more than 30 new jobs in various key areas.
Cansortium currently operates 33 stores in Florida, and the company plans to open an additional 1-2 stores by the end of 2023. The company also completed its first business-to-business sale in Texas and plans to open a brick-and-mortar delivery center in Houston by the end of the year.
Despite the slumps in EBITDA and cash flow, Beasley remained upbeat about the company’s future.
“We look forward to executing on our plans as we deliver another year of revenue growth and cash flow generation in 2023,” he said.