#KahliBuds #MMJ #CBD #THC

AYR Wellness Inc. (CSE: AYR.A, OTCQX: AYRWF) reported financial results for the first quarter ending March 31, 2024. Ayr Wellness told investors that its revenue rose by .3% to $118 million over last year’s $117 million and increased 2.8% sequentially.

The net loss for the quarter was $106 million versus last year’s $194 million in the same period. Last year’s net loss included the discontinuation of the company’s Arizona business, while this year’s net loss was mostly attributed to the loss on the extinguishment of debt. Ayr recorded a loss on extinguishment of $79,172 in the quarter related to the restructuring of debt.

“2024 continues to be about execution for AYR, furthering the progress we made in 2023 by focusing on improving product quality and consistency, building a loyal retail customer base, rebuilding our CPG brand platform, and continuing to prioritize cost controls,” said CEO David Goubert. “First quarter results reflect continued progress with modest sequential revenue growth, adjusted EBITDA margins in line with long-term targets of 25%, and positive free cash flow for the period.”

The company’s cash levels rose to $71 million at the end of the quarter up from $50 million at the end of 2023. Ayr Wellness also reported that it has a working capital of $98 million versus a negative working capital of $7.2 million at the end of 2023.

Revenue breakdown

Retail revenues declined by $3.5 million or approximately 3.4%, which the company attributed to an 8% decrease in retail dollars per transaction for same-store sales. Ayr Wellness also noted that while the number of transactions had been roughly flat, it was partially offset by an increase of $4.5 million from new store openings and acquisitions. Wholesale revenues grew by $3.8 million or approximately 27.1%, primarily driven by a rapid increase in New Jersey store openings, which presented an increased wholesale opportunity for the company. There was also a modest increase in Ohio sales.

Ayr Wellness was able to cut its operating expenses in the quarter to $52 million versus last year’s $69 million. The decrease in total operating expenses was primarily attributable to lower stock compensation and payroll expenses.

Goubert added, “Our team is also acutely focused on positioning AYR for success ahead of the key state-level catalysts on the horizon in Ohio, where we anticipate converting to adult-use over the summer, and Florida and Pennsylvania, where we hope to see adult-use pass later this year. With only 15 of AYR’s 91 dispensaries operating in adult-use markets, we are poised to take advantage of the significant growth opportunity that the transition to adult-use presents across the majority of our footprint, without materially increasing our fixed cost base. With a strong asset base and tailwinds for the regulatory environment, we look forward to generating meaningful, sustainable, and profitable financial growth for years to come.”

Looking Ahead

The company said that it expects second-quarter revenue to be flat to modestly up compared to the first quarter of 2024, before generating stronger growth in the second half of 2024, replacing its previous guidance on the full-year 2024 outlook. Ayr Wellness said it also continues to expect the adjusted EBITDA margin to remain at approximately 25% for the year with normal quarterly fluctuations and to generate positive cash flow from operations and free cash flow for the calendar year 2024.

The post Ayr Wellness delivers solid first quarter results appeared first on Green Market Report.

420GrowLife

via www.KahliBuds.com

Debra Borchardt, KahliBuds, 420GrowLife