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GuruFocus News
Wed, May 14, 2025, 12:19 AM 3 min read
Release Date: May 13, 2025
For the implicit transcript of the net call, delight notation to the full net telephone transcript.
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Glass House Brands Inc (GLASF) reported a 49% year-over-year summation successful first-quarter revenue, reaching $45 million.
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The institution achieved a important betterment successful accumulation costs, reducing them to $108 per lb from $182 per lb successful the erstwhile year.
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Retail gross accrued by 19% year-over-year, outperforming the California authorities retail income diminution of 13%.
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The institution successfully transitioned to a caller organisation spouse with minimal disruption, demonstrating operational resilience.
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Glass House Brands Inc (GLASF) secured a caller $50 cardinal elder secured recognition facility, strengthening its equilibrium expanse and extending indebtedness maturity to 2030.
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The institution faced a 16% quarter-over-quarter diminution successful revenue, attributed to seasonal weakness and distributor transition.
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Wholesale prices successful California continued to decline, with a reported 18% year-over-year drop, impacting wide income prices.
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The anticipated summation successful California's authorities excise taxation from 15% to 19% poses a imaginable situation to ineligible operators.
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The institution experienced a $500,000 gross nonaccomplishment owed to the distributor change, affecting currency collections and margins.
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There are ongoing regulatory uncertainties related to hemp accumulation and interstate commerce, which could interaction aboriginal growth.
Q: Can you clarify if determination are immoderate pending regulatory issues for exporting hemp retired of California, and which markets are you targeting for hemp sales? A: Kyle Kazan, CEO: We are monitoring regulations successful antithetic states and moving with California to marque indispensable changes. We are going CapEx airy to mitigate risks and prioritize speed. Graham Ferar, President: We are targeting states wherever THCA angiosperm is ineligible and are successful discussions with imaginable distributors. We admit the regulatory risks but are excited to determination guardant prudently.
Q: Can you sermon the occurrence of the licensing concern with Plus and Ease successful Florida? A: Graham Ferar, President: The concern is successful aboriginal stages but aligns with our content that consumers nationwide are funny successful California cannabis products. Plus is simply a top-selling edible marque successful California, and Ease saw worth successful partnering with us. We are excited astir the accidental successful Florida and the concern with Ease.
Q: How are you addressing the challenges with distributors successful California, fixed past issues with fiscal health? A: Kyle Kazan, CEO: We person taken steps to bring co-packing in-house and present lone trust connected third-party logistics for distribution. This minimizes hazard and ensures smoother transitions if issues arise. Our squad has done a large occupation maintaining accounts during transitions.
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