Planet 13 Holdings Inc. (OTC:PLNH) reported Friday afternoon a strong revenue increase of 29.7% year-over-year for Q3 2024, reaching $32.2 million. The growth was fueled by the expansion into the Florida market and solid performance at its Illinois store.
Despite the revenue boost, the company posted a net loss of $7.4 million; still a significant improvement from the $46.3 million net loss in Q3 2023.
The company's gross profit rose to $16.7 million, up from $11.1 million in the same quarter last year. Gross margins also improved, reaching 51.9%, compared to 44.7% previously. Planet 13 attributed the margin growth to enhanced yields from cultivation and higher margin sales in Florida.
Operating expenses dropped sharply by 66.4%, thanks to reduced impairment losses, signaling better cost management.
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Planet 13 reported an adjusted EBITDA of $1.3 million, a substantial increase from $0.2 million in Q3 2023, highlighting improved operating leverage.
In spite of consumer spending challenges, co-CEO Bob Groesbeck pointed out the strategic focus on cash flow and scaling its footprint.
"Despite Florida not moving forward with adult-use [cannabis legalization], we see a significant growth runway by expanding our store footprint and enhancing cultivation assets in the state. In addition to our Florida operations, we’re focused on driving growth by scaling our neighborhood store network and broadening the distribution of our HaHa edibles," said Larry Scheffler, co-CEO of Planet 13.
With $27.4 million in cash, up from $11.8 million at the end of 2023, Planet 13 is positioning itself for future growth. The company's expansion in Florida and recent acquisitions signal a commitment to broadening its market presence as it aims for profitability in 2025.
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