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Ascend Wellness Holdings Reports Q4 and Full Year 2024 Results

Ascend Wellness Holdings, Inc. (AWH), a key player in the multi-state cannabis industry, recently unveiled its financial performance for the fourth quarter and the entire year of 2024. The company's focus on improving operations and increasing revenues is evident in the latest figures, which showcase notable achievements and strategic advancements.

Financial Highlights

For the full year of 2024, AWH achieved a net revenue of $562 million, marking an 8% increase from the previous year. This growth was driven by a successful expansion of their wholesale business, which saw wholesale revenues climb by an impressive 28.5%, totaling $189 million. Retail revenue also saw a modest rise of 0.3%, reaching $372 million.

In Q4, however, total net revenue decreased by 4% compared to Q3, coming in at $136 million. The retail segment experienced a slight downturn, with retail sales falling to $90.4 million and wholesale revenue reducing to $45.6 million, largely due to increased competition and pricing pressures across states such as Illinois, Michigan, and Massachusetts.

Despite these challenges, AWH reported an adjusted EBITDA of $30.2 million for Q4, a remarkable 20.4% increase quarter-over-quarter, illustrating the company's continued profitability efforts. Overall, the adjusted EBITDA for 2024 climbed to $116 million, representing a 9% rise from the previous year.

Strategic Developments

The company kept its focus on cost-saving initiatives, successfully implementing a transformation plan that aimed for $30 million in annualized savings. AWH's business strategy also included a push for densification, projected to increase the store count by 50% in the medium term. The development of ten new store locations is currently underway, including sites in Ohio and Pennsylvania.

One of the notable product initiatives was the launch of the brand `Effin'`, which focuses on providing targeted effects from minor cannabinoids. This brand quickly became a market leader in the edibles category at AWH’s stores. These efforts are a testament to AWH's commitment to enhancing consumer experiences while maintaining high-quality product offerings across its brand portfolio, which includes names like Common Goods, Simply Herb, and Ozone.

The company also took steps to bolster shareholder confidence, repurchasing 11 million shares of Class A common stock at a significant discount. This strategic buyback aimed to enhance long-term shareholder value and reduce stock price volatility.

Leadership Commentary

AWH’s CEO, Sam Brill, reflected on the fourth quarter's milestones, expressing satisfaction with the progress made under the new management team. He emphasized that the organization remains focused on both improving profitability and driving cash flow growth. Co-Founder Frank Perullo reiterated the importance of delivering consistent, quality products in an appealing retail environment to ensure long-term business success.

Roman Nemchenko, CFO, highlighted improvements in margins and profitability, showing a glowing outlook for the company. He emphasized a disciplined approach to inventory management and a strong commitment to operational efficiency as crucial factors in enhancing AWH's financial health.

Future Outlook

Looking ahead, AWH is keen on continuing to expand its footprint in key markets while maintaining a close eye on operational efficiency and cost-effectiveness. With initiatives like adult-use sales commencing at additional locations in Ohio, the company’s revenue growth trajectory appears promising.

Ascend Wellness Holdings is poised to navigate an evolving market landscape while asserting its place as a prominent leader in the cannabis industry. For more information on their financial updates and strategic direction, visit AWH's Investor Relations Page.