Florida-based Jushi Holdings Inc. (CSE: JUSH) (OTCQX: JUSHF) posted a net loss of $65.1 million for 2023, including an $18 million net loss in the fourth quarter, the company reported on Wednesday.
The figures are an immense improvement year-over-year, after Jushi posted a $202.3 million loss in 2022, including $140 million lost in the fourth quarter that year alone.
Revenues hit $67.8 million in the fourth quarter, up from $65.4 million in the third quarter, but down year-over-year by 11.8% from $76.8 million. The company said the sales dip was due to “increased competition and pricing pressures” in several of its state markets, including Illinois, Nevada, and Pennsylvania, along with the closure of four “underperforming” Jushi stores in California and Pennsylvania.
Although those sales declines were “partially offset” by Jushi assets in Ohio, Massachusetts, and Virginia, total annual revenues for the company last year were just $269.4 million, down year-over-year from $284.3 million in 2022.
Still, Jushi hit a gross profit margin of 40.2% in the fourth quarter, and a 43.1% gross profit margin for the year, which was enough for CEO Jim Cacioppo to dub the quarter a “strong finish” to 2023.
“We successfully increased our margins through our commitments to reducing operating expenses and driving operational efficiencies across the business,” Cacioppo said in a release.
In the coming months, Cacioppo said, “We expect to continue to strengthen our profitability through further optimization of our grower processor facilities, including reducing green waste, increasing our yields and potency, and introducing higher margin products in our vertical markets.”
During 2023, Jushi introduced 175 new cannabis products to its line and brought Jushi-branded products to over 53% of all retail sales at its dispensaries. Wholesale sales also increased 30% for the year and sold off non-core assets for $2 million in cash.
So far in 2024, Jushi has opened its 17th dispensary in Pennsylvania, refinanced $10 million of its $226 million worth of debt, and scheduled a separate $2.4 million debt payment to SunStream Bancorp Inc.
At the close of the year, Jushi had $81.6 million in total assets, including $26 million in cash, against $471 million in total liabilities.
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