Jushi Holdings Inc. (CSE: JUSH) (OTCQX: JUSHF) reported its second-quarter 2023 financial results ending June 30, reflecting shifts in its operational and profitability strategies.
Jushi reported a revenue of $66.4 million, down from $72.8 million in the same period of the previous year. The year-over-year decrease was attributed to a combination of closing underperforming stores and increased competition in states like Illinois, Nevada, and Pennsylvania. However, the company said that the challenges were partially mitigated by the opening of new dispensaries in Virginia and Ohio.
Despite the revenue decline, the company reiterated that its focused on efficiency. Gross profit margin rose to 46%, marking an improvement from 36.7% in the same period in 2022. That was achieved, as CEO Jim Cacioppo noted, through the company’s will to “aggressively execute our cost savings and optimization initiatives.”
Jushi’s EBITDA was reported at $12.6 million, a notable jump from $500,000 in the second quarter in 2022.
“Our results for the quarter reflect the strides we have made toward long-term, reliable profitability,” Cacioppo said. He also mentioned that the company aims to generate positive operating cash flow within the coming quarters.
The company during the period moved to reduce retail labor hours by over 50%, following the implementation of a “budgeted retail labor hour model.”
Looking ahead, Jushi is gearing up for continued growth. The company announced its plans to launch “Hijinks,” a new premium flower brand, and expand its retail footprint with a new outlet opening in Virginia by the end of this month.
The company also emphasized its support for the Pennsylvania bipartisan adult-use bill that is currently under active consideration.
Despite facing a net loss of $14 million for the second quarter, the company feels that strategies to pivot towards a more profitable and efficient model indicate an optimistic outlook for the upcoming quarters.