Cost cuts fuel 1933 Industries’ upswing
Nevada-based 1933 Industries Inc. (CSE:TGIF) (OTCQB:TGIFF) posted financials for the second quarter and first half of its 2024 fiscal year, which ended Jan. 31, showing higher expenses primarily due to the fact that the company didn’t receive a big tax refund like last year.
1933 reported total revenue of $4.7 million for the quarter, a 10% increase from the same period in the previous year. For the first six months of the fiscal year, revenue reached $10.3 million, up from $9.3 million in the same period in fiscal year 2023.
The company highlighted its rank as a top five cannabis brand in Nevada, with a leadership position in the flower category as of December, according to Headset.
“Continued efforts to implement strategic measures to increase cultivation yields, coupled with the enhancements undertaken at the cultivation facility in 2023, continue to bear positive outcomes,” CEO and chairman Paul Rosen said in a statement. “The quarter was negatively impacted by the trend of December historically being a weak month for the Nevada cannabis industry, while January rebounded to be one of the strongest months in the company’s history.”
Gross profit, excluding fair value adjustments, was $2.2 million for period and $6 million for the first half of the fiscal year. After adjustments, gross profit increased significantly compared to the same period in the previous year, rising to $1.4 million in the second quarter, from $500,000 last year.
Expenses also increased, to $2.1 million from $400,000 in the second quarter last year, primarily due to a one-time payroll tax refund the company received the previous year. Actual expenses fell by 11% during the reporting period, which the company attributed to operational efficiencies.
The company’s net loss for the second quarter was $700,000, and the comprehensive loss was $400,000. For the first six months of the fiscal year, the net loss declined to $1.1 million from $1.5 million in the same period in 2023.
1933 also announced the completion of upgrades to its cultivation facility in Las Vegas, which it says is expected to help stabilize operating expenses and improve financial performance in the future. The company renegotiated its convertible debentures, extending the maturity date to Dec. 31, 2025.
1933 operates through two subsidiaries: Alternative Medicine Association, a licensed cannabis cultivator and producer, and Infused MFG LLC, which manufactures hemp-derived, CBD-infused wellness products under the Canna Hemp brand.
Management said the company is focused on building a portfolio of cannabis brands and products in the Nevada market while expanding the CBD-infused product line nationwide.
