Release Date: March 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Jushi Holdings Inc (JUSHF, Financial) achieved a record quarter in terms of operating cash flows, generating $7.2 million in Q4 2024, a 59% increase from Q4 2023.
- The company successfully opened or acquired five new dispensaries as part of its 'seven and seven' retail store strategy, with plans to open three more by the end of Q3 2025.
- Jushi Holdings Inc (JUSHF) reported a significant improvement in annual cash flows from operations, generating $21.6 million in 2024 compared to a $3.3 million outflow in 2023.
- The company increased its annual gross profit by $2.1 million to $118.3 million in 2024, driven by increased private label sales and enhanced grower processor performance.
- Jushi Holdings Inc (JUSHF) continues to expand its retail footprint, with plans to open 14 new store locations by mid-2026, representing a 40% increase since the end of Q3 2024.
Negative Points
- Revenue for Q4 2024 decreased to $65.9 million from $67.8 million in Q4 2023, primarily due to price competition and reduced consumer spending.
- Gross profit margin declined to 39% in Q4 2024 from 40% in Q4 2023, impacted by higher production costs and pricing pressures.
- The company reported a net loss of $12.5 million in Q4 2024, although this was an improvement from the $18 million loss in Q4 2023.
- Jushi Holdings Inc (JUSHF) faced operational challenges in Pennsylvania and Massachusetts, affecting product availability and wholesale revenue.
- The company experienced a decrease in wholesale revenue, primarily due to pricing pressures and delays in product market entry in Massachusetts and Pennsylvania.
Q & A Highlights
Q: What's different this time around in Pennsylvania regarding cannabis legalization, and how soon could recreational sales start in Virginia if a Democrat wins the Governor election?
A: Jim Cacioppo, CEO, explained that in Pennsylvania, the political climate is different this year due to a significant budget deficit, making cannabis legalization a more pressing issue. In Virginia, if a Democrat wins, recreational sales could potentially start by early 2027, depending on the political landscape and regulatory processes.
Q: Why is Jushi expanding in competitive states like New Jersey and Illinois instead of focusing more on Ohio and Pennsylvania?
A: Jim Cacioppo, CEO, stated that Ohio and Pennsylvania are indeed priorities, but expansion in New Jersey and Illinois is strategic. Jushi has a strong presence and experience in Illinois, making it a profitable market. The expansion in New Jersey is based on acquiring licenses in communities with limited competition.
Q: How is Jushi addressing the pricing pressure and operational challenges in Massachusetts and Pennsylvania?
A: Michelle Mosier, CFO, mentioned that Jushi is focusing on efficiency improvements at cultivation and processing facilities. They are also enhancing product quality and availability, which has led to sales growth in Virginia and Ohio, partially offsetting declines in other states.
Q: Can you provide more details on Jushi's financial performance and cash flow improvements?
A: Michelle Mosier, CFO, highlighted that Jushi improved cash flows from operations by 59% in Q4 2024 compared to the previous year. The company also reduced its net loss by $5.5 million year-over-year and strengthened its balance sheet through strategic capital infusions and debt reduction.
Q: What are Jushi's plans for retail expansion and store openings in 2025?
A: Jim Cacioppo, CEO, outlined that Jushi plans to open eight new stores by the end of Q3 2025, focusing on Ohio, Pennsylvania, and New Jersey. The company is also moving underperforming locations to stronger areas and investing in marketing to increase customer traffic.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
