The company said it will continue to implement cost-cutting measures.
California-based Vibe Growth Corp. (CSE: VIBE) (OTCQB: VIBEF) posted mixed results in its third-quarter earnings, as a fall in overall revenue offset margin gains.
Revenue for the period, which ended Sept. 30, fell to $3.4 million from $3.7 million in the prior-year quarter, marking an 8.1% decline. Additionally, net loss was $1.34 million, versus $1.13 million in the same period in the previous year.
Vibe said that its dispensary gross margins rose to 49.7% in the third quarter of 2023, up from 33.6% in the corresponding period last year.
“In the third quarter, we started to see the results of the groundwork for centralized purchasing and internal distribution, leading to improvements to Vibe’s dispensary gross margins,” CEO Mark Waldron said in a statement. “We’ve launched several new Hype products and continue to focus our marketing efforts on supporting the new product launches, and Vibe continues to implement cost reductions by reducing head office staffing levels.”
The company reported adjusted EBITDA for the quarter was also positive, standing at $281,672, versus a loss of $208,643 in the same quarter the previous year. At the end of the period, Vibe’s cash reserves were reported at $2.8 million.
However, the company’s financial statements reveal a working capital deficit of $3.35 million as of Sept. 30, excluding current portions of lease obligations and notes payable. Filings also show a net loss of $3.88 million for the nine-month period, with a cumulative deficit of $28.5 million.
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