#KahliBuds #MMJ #CBD #THC

Entourage Health Corp. (TSX-V: ENTG) (OTCQX: ETRGF)  announced its financial results for the fiscal year that ended December 31, 2023. While the company didn’t break out its fourth-quarter earnings, it appears revenue was C$13.7 million in the quarter, which would be an improvement over 2022’s fourth-quarter revenue of $12 million and an increase sequentially from the third-quarter revenue of C$12.2 million.

Entourage Health reported a total revenue of C$54.1 million for the year which was down ever so slightly from 2022’s revenue of $54.5 million.

The net losses for 2023 were slashed to C$46 million from 2022’s net losses of C$123 million. The loss per share was C$0.15 versus last year’s loss per share of C$0.40. In addition, the company recognized an impairment of inventory amounting to C$2,532,132 during 2023.

On a positive note, cash levels did grow from C$9 million at the end of 2022 to C$11 million at the end of 2023. Plus, the company managed to cut its cost of goods sold down from C$50 million in 2022 to C$38 million.

“In 2023, Entourage made significant strides, advancing production and diversifying our market presence with innovative products,” notes George Scorsis, CEO and Executive Chair. “Dime Bag’s success is a prime example—quickly rising to become one of Ontario’s fastest-growing pre-roll brands and maintaining its market leadership for two consecutive quarters. Driven by surging demand for our products and the effectiveness of our enhanced business model, we’re achieving growth while improving cost efficiency, firmly establishing ourselves in a favourable financial position.”

The company stated that its selling, general, and administrative (SG&A) expenses for 2023 totaled $26.1 million, compared to $30.3 million in 2022. Entourage said, “This significant decrease was primarily due to the successful implementation of an organization-wide restructuring plan. This plan, aimed at enhancing efficiency and streamlining operations, not only contributed to a decrease in selling expenses, but led to a substantial cut in overhead costs.”

Headwinds still blowing

Entourage Health is still considered a going concern. At the end of 2023, it had a working capital deficiency of $146,908,961 and an
accumulated deficit of $365,536,031. In 2023, the company used cash in operating activities of $10,239,888, resulting primarily from a net loss of $46,168,010.

To manage through this period, the company said it plans to fund operations through existing cash positions. It is also evaluating several different strategies with its lender LiUNA Pension Fund of Central and Eastern Canada and said it plans to pursue actions that are
expected to increase its liquidity position. Entourage said these options would be to continue to cut costs and maybe issue more debt, while also monetizing assets. Entourage also told investors that it has received a forbearance letter from LPF waiving the company’s breached covenants and non-payment of principal and interest until May 3, 2024. The statement said, “There are no assurances that the date of the waiver will be extended.”

The company has opted to skip the earnings call for the fourth quarter and fiscal year 2023. Instead, it said it will host a call with the first quarter 2024 earnings results on or before May 30, 2024.

 

 

The post Entourage Health is making progress in its turnaround appeared first on Green Market Report.

420GrowLife

via www.KahliBuds.com

Debra Borchardt, KahliBuds, 420GrowLife