Florida drives revenue growth for Cansortium in 2023

Cansortium (CSE: TIUM.U) (OTCQX: CNTMF), which operates under the FLUENT brand, posted its annual financials ending Dec. 31, 2023, reporting record revenue and positive cash flow generation during the fourth quarter, driven by strong performance in the Florida market.

Revenue for the fourth quarter rose 9% to $25.5 million versus $23.4 million in the same period last year. Florida revenue grew 11% to $21.6 million versus $19.4 million in the fourth quarter of 2022.

Full-year revenue rose 11% to $97.3 million versus $87.7 million in 2022, with Florida revenue rising 11% to $81.2 million from $73 million. Net loss for the year totaled $22.75 million, an improvement versus last year’s $37.4 million.

For the fourth quarter, net loss was $4.7 million, compared to the previous year’s $9.7 million net loss.

“We delivered record revenue and positive cash flow generation during the fourth quarter as we continued to execute on our growth objectives,” CEO Robert Beasley said in a statement. “We are making the critical investments needed to lay the foundation for growth and support our future plans and remain excited about the opportunities ahead.”

Beasley added, “In Florida, we continue to ramp our new dispensaries while driving cultivation improvements, leading to production of more high quality, high-THC products. These operating improvements drove higher retail prices and higher average basket size during the quarter.”

Cansortium said it plans to expand its presence in Texas by opening a brick-and-mortar delivery center in Houston by early 2025 while continuing to drive improvements in Florida and Pennsylvania.

However, the company restated its earnings for the first three quarters of 2023 due to accounting errors related to biological assets, depreciation, and an Employee Retention Tax Credit claim. The audit committee and management concluded that the errors impacted previously issued consolidated financial statements.

In 2023, Cansortium opened four new dispensaries in Florida and added two additional locations in the state in early 2024, bringing its total Florida dispensary count to 35.

Beasley said during an earnings call in November that the company’s growth plans will depend on whether Florida legalizes recreational marijuana, which is closer to reality after the state Supreme Court recently green lit the effort.

As of Dec. 31, 2023, the company had approximately $10.5 million in cash and cash equivalents and was carrying a debt load of $61.2 million, with roughly 300 million shares outstanding.