Jushi Holdings Inc (CSE:JUSH, OTCQX:JUSHF) reported increases in its gross profit and gross profit margin for the second quarter driven by operating efficiencies at its grower-processor facilities in Massachusetts and Virginia.
The company grew its gross profit to $30.6 million, up 14.6% from $26.7 million in the year-ago quarter.
Its gross profit margin increased to 46%, compared to 36.7% in the comparable period last year.
“I am pleased to report the continued improvement in our profitability as we aggressively execute our cost savings and optimization initiatives across our national footprint, driving a meaningful reduction in operating expenses year-over-year,” Jushi CEO Jim Cacioppo said in a statement.
“The significant enhancements we have made in our grower-processor facilities in Pennsylvania and Virginia have enabled us to operate more efficiently on a larger scale with increased capacity, resulting in expanded margins and wholesale revenue growth.”
Cacioppo noted that the company had also seen meaningful product quality improvements across its portfolio of brands.
“Jushi-branded product sell-through has remained steady across our vertical markets, representing nearly half of total retail sales,” he said.
“Sales are expected to increase with the Woodbridge, Virginia store opening and two Pennsylvania stores reopening as well as the launch of new, competitive, higher margin products, such as the anticipated introduction of our Hijinks brand in multiple states in the second half of the year.”
Jushi’s revenue for 2Q was $66.4 million, compared to $72.8 in the year-ago quarter.
The company attributed the decrease in revenue to a modest decline in its retail sales due to the closure of three underperforming stores in addition to headwinds in Illinois, as Missouri moved to recreational use, and Nevada and Pennsylvania, due to increased competition.
This was partially offset by new dispensary openings in Virginia and Ohio.
Its net loss for the quarter was $14 million, compared to net profit of $12.1 million in 2Q 2022.
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