Glass House Loses $39M Despite Increasing Revenue
The losses are up 195% year-over-year
The company revised its revenue projection for 2023 upward.
Glass House Brands Inc. (NEO: GLAS.A.U) (OTCQX: GLASF) managed to increase revenues year-over-year by 108% but also lost nearly $39 million in the first quarter of 2023, the company reported in its earnings on Monday.
The losses are up 195% year-over-year, following a $19.8 million loss in the same time period a year prior, and are up 231% from the final quarter of last year, when Glass House posted a $16.7 million loss.
The company also asserted that it had to pay a “non-cash impairment charge” of $23 million this past quarter “related to the Plus Products Holdings acquisition.”
But Glass House leadership said they were confident in their vertically integrated business model, particularly with increasing wholesale prices in California, which the company said should bolster revenues through 2023.
“Our performance in the first quarter of 2023 continues to demonstrate that our unique business model has significant competitive advantages that we are just beginning to unlock, which we expect will lead to tremendous growth in both revenues and profitability in the future,” CEO Kyle Kazan said in a press release.
Revenues for Q1 were $29 million, up 108% from $13.9 million a year ago, though the result was also down sequentially from Q4 by 10%. Wholesale revenues, retail revenues and consumer packaged goods revenues were all up year-over-year, but were down from Q4, which the company said was due to seasonality.
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