The following is a summary of the SLANG Worldwide Inc. (SLGWF) Q1 2024 Earnings Call Transcript:
Financial Performance:
Q1 2024 revenue was $7.03 million, a 35% decrease year-over-year primarily due to declines in core market sales.
Gross profit for Q1 2024 was $3.36 million with a gross margin of 48%, representing a 5% decrease in gross margin year-over-year.
Adjusted EBITDA loss for Q1 2024 was $1.06 million, compared to a profit in Q1 2023.
Business Progress:
Expansion in higher-margin revenue channels, particularly in the e-commerce sales of Alchemy Naturals CBD gummies and wholesale sales in Vermont.
Continuous improvement in operational efficiency seen in the reduction of total operating expenses by 4% year-over-year and 16% quarter-over-quarter.
Exploring strategic initiatives potentially involving mergers, acquisitions, or other business combinations.
Opportunities:
New regulatory possibilities following DEA's proposed rule to move cannabis to a Schedule III drug, potentially relieving burdensome taxes.
Expansion of the e-commerce business segment as a growth catalyst.
Risks:
Continuing market saturation in Vermont and ongoing softening of sales in the Colorado market.
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