Red White & Bloom Brands (RWB) Q2 2024 earnings summary

Executive summary

• Advanced refinancing agreements and prepared to open five new retail locations in Florida, anticipating legalization opportunities.

• Established key distribution partnerships in California and secured value-added crop commitments in Michigan to mitigate supply chain risks.

• Focused on realigning Emblem Cannabis Corporation, eliminating underperforming listings, and introducing new product formats for growth and efficiency.

Financial highlights

• Q2 2024 revenue was $22.0 million, up $0.3 million from restated Q2 2023 revenue of $21.7 million.

• Gross profit before fair value adjustments was $6.3 million, down $0.2 million year-over-year; after adjustments, YTD gross profit was $14.2 million, flat year-over-year.

• Q2 2024 EBITDA was $2.0 million and Adjusted EBITDA was $3.6 million, up $2.2 million and $5.6 million, respectively, from Q2 2023.

• YTD 2024 EBITDA was $7.1 million and Adjusted EBITDA $5.8 million, up $8.1 million and $6.7 million, respectively, from YTD 2023.

• Net loss for Q2 2024 was $10.7 million, compared to $8.6 million in Q2 2023; basic loss per share remained at $(0.02).

Outlook and guidance

• Management expects incremental EBITDA growth in the second half of 2024, driven by recent strategic initiatives and anticipated synergies from Emblem group integration.

• Cost containment and operational alignment are expected to support sustainable growth and further EBITDA gains into 2025.