The following is a summary of the TILT Holdings Inc. (TLLTF) Q1 2024 Earnings Call Transcript:
Financial Performance:
TILT Holdings reported a decrease in Q1 2024 revenue to $37.5 million, primarily due to lower sales volume and price compression.
Gross margin decreased to 17.9% from 20.8% in Q1 2023, primarily due to lower average pricing.
TILT posted a net loss of $9.7 million, higher than the $4.9 million loss in the previous year due to lower gross profit and an $8.4 million gain on asset sales in Q1 2023.
Adjusted EBITDA was positive $38,000 in Q1 2024 as opposed to negative $79,000 in the same period the previous year, driven by improved operating cost controls.
Cash flow was negative $2.4 million compared to positive $3.8 million in the previous year. By end of March 2024, the company had cash and cash equivalents of $3.5 million.
Business Progress:
TILT Holdings is strategically maximizing margins through product portfolio optimization, contract renegotiation, increased throughput in plant-touching businesses, and an overhaul of people, processes, and technology at Jupiter.
The company embarks on strengthening its customer relationships across plant-touching and Jupiter hardware businesses.
They are investing in maintenance CapEx for improved cannabis yields, potency, and cannabinoid profiles in Massachusetts, while preparing for adult-use sales in Ohio.
TILT refined and re-focused its strategy on cannabis brand partnerships in 2023 to align better with their inhalation strategy, adding strong brands to their portfolio.
Lastly, the company has begun receiving shipments from their manufacturing partner, Smoore's Indonesian facility, which it believes will positively affect the business.
More details: TILT HOLDINGS INC IR
Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.