Blum Holdings, Inc. reported a significant financial turnaround for the fiscal year ending December 31, 2024, achieving a net income of $33.1 million compared to a net loss of $14.1 million in the previous year. This improvement was driven by a 67.5% increase in revenue, which rose to $12.99 million from $7.76 million in 2023. The company attributed this growth primarily to its Northern California Transactions, which contributed $7.73 million in revenue, despite a decrease in revenue from existing dispensaries that were sold during the fiscal year.
The company underwent substantial operational changes, including the sale of several dispensaries, such as Blüm Santa Ana, Blüm Oakland, and Blüm San Leandro, which were sold for approximately $2.06 million and $1.12 million, respectively. These divestitures were part of a strategic restructuring aimed at focusing on more profitable operations. Additionally, Blum Holdings executed a management services agreement with Safe Accessible Solutions, Inc. to manage its Sacramento dispensary, further expanding its retail footprint.
As of December 31, 2024, Blum Holdings employed 76 individuals, maintaining a balanced workforce of full-time and part-time employees. The company reported a gross profit of $6.21 million, up from $3.81 million in the previous year, although its gross margin slightly declined to 47.8% due to increased promotional activities in a competitive market. The company also noted a significant reduction in selling, general, and administrative expenses, which fell to $18.56 million from $21 million in 2023.
Looking ahead, Blum Holdings expressed a cautious but optimistic outlook, focusing on enhancing its product offerings and improving operational efficiencies. The company aims to leverage its recent acquisitions and restructuring efforts to stabilize its financial position and drive future growth. However, management acknowledged ongoing challenges, including regulatory uncertainties and the need for additional capital to sustain operations, raising concerns about the company's ability to continue as a going concern. The company plans to address these challenges through strategic investments and operational improvements while navigating the complexities of the cannabis market.
About BLUM HOLDINGS, INC.
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