#KahliBuds #MMJ #CBD #THC

4Front Ventures Corp. (CSE: FFNT) (OTCQX: FFNTF) reported its financial results for the fourth quarter and full year ending Dec. 31, 2023, after the market closed on Monday. 

Revenue fell 21% to $21 million for the fourth quarter versus 2022’s revenue in the fourth quarter. It also increased slightly over the third quarter’s revenue of $20 million.

Full-year results

Revenue declined by 10% for 2023 to $97.4 million from 2022’s $107 million. 4Front said that Massachusett‘s annual revenue of $44.1 million was 7.4% lower than the prior year, which was attributed to lower volumes as a result of underperforming flower yields and price declines experienced during the current year. In addition to the declines in Massachusetts, revenue in Illinois dropped by 7.1% to $37.7 million, primarily due to price compression.

The net loss for 2023 was a whopping $91.6 million versus 2022’s net loss of $46.8 million. As of Dec. 31, 4Front said it had $3.4 million in cash and $47.5 million in related-party long-term debt, which has since been reduced by $23 million after the quarter’s end and was not due until May 1, 2026.

New CEO Andrew Thut said, “Our growth strategy, particularly in Illinois with the imminent opening of our Matteson facility and two new stores, is expected to double our production capacity and significantly boost our revenue and profitability in the state. Additionally, we anticipate further growth in Massachusetts that is expected to accelerate starting in the second quarter, as we expand our wholesale channels and continue to benefit from investments in our cultivation facilities, adjustments made to our product lines, and an improved menu offering.”

On that note, wholesale revenue growth in Illinois and Massachusetts, with a 75% and 42% increase year-over-year, respectively.

Thut continued, “This growth is a testament to our capacity to deliver high-quality products at the right price. The Washington facilities enjoyed a significant revival, with flower revenue nearly doubling from the first to the last quarter. It’s noteworthy that these positive achievements helped to balance out a year fraught with headwinds, particularly in California, and in other competitive local environments as well. While these challenges were costly, they have ultimately paved the way for a more focused, streamlined, and profitable business. We have learned a great deal from our experiences, and our team is stronger and better prepared for the future as a result. With the advancement of our Matteson facility and our ongoing expansion into Illinois retail, I believe that 2024 and 2025 will truly showcase our ability to compete and win in battleground markets.”

“Our efforts to boost the quality and diversity of our flower products have yielded significant results. By diversifying our crop rooms, adopting new dry and cure methods, and switching to rockwool media, we’ve substantially improved both our harvests and quality control. Our products now feature an average THC level of 25%, with some strains exceeding 30%, and an overall cannabinoid content approaching 31%. These achievements are clear indicators of our operational progress and our commitment to R&D, particularly in the rapidly evolving vape segment, ensuring we maintain a competitive edge.”

The post 4Front Ventures reports revenue drop as net losses rise appeared first on Green Market Report.

420GrowLife

via www.KahliBuds.com

Debra Borchardt, KahliBuds, 420GrowLife