Glass House Brands of California (CBOE CA GLAS.A.U) and (OTCQX GLASF) finally achieved profitability in the last financial year, reporting a profit net income for the year ending December 31, 2017 at $721,000 with revenues exceeding $200 million.
Glass House has made a significant turnaround, as it reported losses of 98 millions in 2023 compared to $32.9 in 2022.
Glass House’s revenue totaled $200.9m for the year. That is a 25% increase over last year. $53m in revenues for the 4th quarter was an impressive 31% rise from the previous year. Cash flow from operations was $28,4 million. This is an 18% increase over the previous year.
Each of the three revenue streams has improved over the past year. Glass House’s largest revenue stream was wholesale biomass, which grew by 32% to $139.1 millions. Retail revenues jumped by 12% to $43.8, while wholesale consumer packaged products grew by 10%.
Glass House also saw an increase in production last year. More than 165,000 pounds were harvested during the fourth quarter, which is a 60% jump from year to year. Glass House has reduced the cost of its production to $110 per kilogram in the last quarter. That’s 9% less than the previous year.
In a recent press release, CEO Kyle Kazan stated that Glass House was just getting started and 2024 “will position the company to its next expansion wave.” In the coming year, “managing expenses and costs” will be a priority in light of price compression.
“Looking ahead, in 2025 while we plan for pricing pressure in California to persist in the near-term, we will continue to drive operational efficiencies … and place emphasis on our leading brands to drive further growth throughout our retail, CPG and wholesale businesses,” Kazan said.
He said that Glass House had entered the hemp industry and was growing “hemp-derived marijuana” in its Santa Barbara greenhouse.
The demand for 2018 Farm Bill-compliant crops is huge, so we’re confident of selling everything that we grow. Kazan explained that the plan is to have it formalized by this quarter.
Glass House estimates revenues of $220-$230 million per year, with $42 to 44 million dollars for the first three months of 2025. The company is expecting to produce between 760,000-780,000 pounds cannabis biomass with a wholesale rate of $215-$220 a pound.
Glass House, as at December 31, had total assets of $310.5 millions, which included $36.9 Million in cash. Total liabilities were $146.4 million.