Schwazze SHWZ, known as Medicine Man Technologies, Inc., shared its financial outcomes for the initial quarter of 2024, reflecting a 4% rise in total revenue compared to the same period in 2023. Interim CEO Forrest Hoffmaster highlighted the company's revenue growth in Q1 despite tough market conditions in Colorado and New Mexico. In response to the competitive challenges faced, the company concentrated on refining its retail and wholesale strategies by adjusting pricing, promotions, and enhancing the in-store customer experience.
The company reported that while Colorado sales were down by 10% year-over-year due to lower volumes, their overall sales across markets were up by 9%, which exceeded market expectations. In New Mexico, despite a significant increase in store counts, Schwazze prioritized offering high-quality products and enhancing the customer experience, leading to a commendable performance. Over the past four years, the company has undergone expansive growth through 13 acquisitions, establishing a strong retail presence in Colorado and New Mexico. Hoffmaster expressed confidence that their operational playbook and cost controls will drive Schwazze towards greater profitability in the future.
total revenue of $41.6 million (up 4% from Q1 2023), gross profit of $17.9 million (43.1% of total revenue), a loss of $2.7 million from operations, a net loss of $16.1 million, adjusted EBITDA of $7.3 million, negative operating cash flow of $3.7 million, and operating expenses of $20.6 million. Despite these notable financials, Schwazze's cash and cash equivalents decreased to $13.2 million by March 31, 2024, from $19.2 million at the end of December 2023, while total debt increased to $159.7 million from $156.8 million during the same period. The company also expanded its retail presence by launching a new dispensary in Las Cruces, New Mexico, under the Everest Apothecary brand, reaching a total of 34 stores. Additionally, they achieved significant wholesale growth and saw impressive sales performances with Lowell Herb Co. pre-rolls and Wana gummies in Colorado and New Mexico, respectively.