California cannabis company Blüm Holdings, Inc. (BLMH) announced its second-quarter financial results on Thursday, showcasing a significant turnaround for the company. The results, covering the three months ending June 30, 2024, were hailed as “financial milestones” by Patty Chan, the company’s CFO, who described them as the culmination of the company’s transformative journey initiated in August 2022.
A key factor in Blüm’s positive performance was the sale of Blüm Santa Ana, a cannabis retail dispensary campus in Santa Ana, California. The sale, completed in June 2024, saw the company’s subsidiary, Unrivaled Brands, sell its controlling membership interest in People’s First Choice LLC (PFC) to Haven Nectar LLC. This transaction brought in $24.8 million in total consideration, comprising $9 million in cash and $15.8 million in assumed liabilities.
The sale had a major impact on Blüm’s balance sheet, eliminating an estimated $37.9 million in liabilities and contributing to a total liability reduction of approximately $63.3 million since December 31, 2021. This financial strength has positioned the company for sustained growth and profitability, as highlighted by CEO Sabas Carrillo: “Our streamlined operations, reduced debt load, and expanded retail footprint provide a robust platform for sustained growth and profitability.”
The Q2 2024 financial results reflected the positive impact of these strategic moves. Revenue reached $3.8 million, a substantial increase from the $1.8 million reported in the second quarter of fiscal 2023. Gross profit also saw a significant rise to $1.6 million, up from $798,000 in the prior year’s quarter. This translated into a 42% gross profit margin, compared to 45% in the second quarter of last year.
Further demonstrating the company’s turnaround, Blüm Holdings achieved a net income – attributable to the company – of $23.8 million, a dramatic improvement from the $3 million net loss reported in the same period last year. While adjusted EBITDA remained negative at $3.7 million, it represented a significant improvement from the $3.1 million adjusted EBITDA loss in the second quarter of fiscal 2023.
These results underscore Blüm Holdings’ commitment to strategic restructuring and operational efficiency, setting the stage for a promising future in the California cannabis market.
