California’s Glass House Brands Nearly Doubles Annual Revenue
April 2, 2024California cannabis operator Glass House Brands nearly doubled its annual revenue to $161 million last year, as adjusted EBITDA tallied $25 million, reversing a loss from the previous year. While the company reached new milestones in 2023, it noted that conditions remain difficult in California’s retail cannabis market, where it has 10 stores across the state.
Glass House’s revenue surge was driven by a 155% increase in wholesale cannabis sales, which reached $106 million for the year on volume of 339,000 pounds, nearly double the 172,000 pounds sold in 2022. “Strong demand for everything we grow continues and we ended the year with finished goods inventory relative to sales of less than two weeks,” said cofounder and CEO Kyle Kazan. “We need more inventory to meet this demand.” He added that the company is expanding supply with a new greenhouse recently coming online.
Glass House also saw retail sales increase, jumping 46% to $39 million as the company opened more stores. The growth was credited to “incremental revenues from the four retail locations we acquired in Q3 2022, a fifth retail location acquired in April 2023, and two new Farmacy stores opened around year-end 2022.”
The Long Beach-based company is expecting sales between $215 to $220 million for 2024, representing an increase on the order of 35%, as more wholesale inventory comes online. That will also help drive adjusted EBITDA to higher than $50 million for the year, according to Glass House’s guidance.
Conditions are expected to remain tough in the retail segment, however, as price discounting continues in the California market, which could result in a shakeout among operators. Over the course of this year, “We expect combined revenues from retail and CPG to be basically flat compared to last year,” Glass House noted.—Daniel Marsteller
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