StateHouse Reports First Quarter 2023 Financial Results - Seite 2

“With our fully integrated supply chain and industry leading scale we anticipate realizing additional cost synergies throughout this year through the addition of new automation capabilities and further refinement and optimization of our operations. In April we celebrated our momentous one-year anniversary as a unified powerhouse, propelling ourselves to the forefront of the California cannabis landscape. It has been an exciting year and we believe our unwavering pursuit of excellence throughout this integration has strongly positioned us on the right pathway to success.”

Q1 2023 Highlights

• Q1 2023 net revenues were $24.7 million, an increase of 42.8% compared with $17.3 million in Q1 2022.
  • Retail revenues were $14.4 million, representing 58.5% of total sales for Q1 2023, an increase of $2.8 million compared to Q1 2022. 
• Gross profit before adjustments for biological assets increased 98% to $10.9 million in Q1 2023, compared with $5.5 million in Q1 2022.
• Consolidated gross margins improved to 44.3% in Q1 2023, compared to 31.9% for Q1 2022.
• Q1 2023 cultivation yields in the Company’s Salinas facility were up 101.0% over Q1 2022 due to improved practices.
• Increased retail presence in California with the opening of the Company’s 14^th in-state dispensary, which the Company will manage through a management service agreement. The new Urbn Leaf dispensary has a premier location in West Hollywood: a prominent spot on Sunset Boulevard.
• Launched high-value customer loyalty program “TOPS”. Customers enrolled in TOPS will receive 1 point per $1 dollar spent (taxes excluded), as well as 1.5 points per $1 dollar spent on in-house brands. Subject to certain terms and conditions, TOPS members can receive $10 in savings for every 100 points earned. As of the end of Q1 2023, the program has more than 250,000 loyalty members enrolled.
• Introduced a new line of Liquid Diamond Infused Pre-Rolls under the Company’s Dime Bag brand. The pre-rolls are available in pocket-friendly packs of three at all the Company's 14 dispensaries, as well as in the California wholesale market.
• Joined the Cannabis Research Coalition (“CRC”), a collaborative research partnership between The Hemp Mine and Clemson University. StateHouse expects to benefit from the coalition’s cooperative research model as it will provide the Company's cultivation teams with the tools needed to stay competitive while further enhancing quality.
• Entered a cultivation partnership with Refined Genetics LLC, an industry leader in genetic development and commercial propagation of world class cannabis cultivars.

Operations Update⁽²⁾