"Every decision and action that we have taken has moved us closer towards achieving our targeted goal of accelerating our path to profitability,” said company president Eugene Ruiz
1933 Industries Inc () () has reported that its 1Q 2021 revenue rose by 13% quarter over quarter to $2.7 million, which it attributed to strong consumer demand following the launch of cannabis flower and pre-rolls in Nevada.
The company also noted that its 1Q net loss from continuing operations improved by 61% from 4Q 2020 to $2.8 million and said it is moving closer to profitability, while its adjusted EBITDA loss for the period shrunk by 81% quarter over quarter to $1.4 million.
“Our team has been steadfast in our commitment to transforming the company into a profitable enterprise. Every decision and action that we have taken has moved us closer towards achieving our targeted goal of accelerating our path to profitability,” said 1933 Industries president Eugene Ruiz in a statement.
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He added: “During the first quarter 2021, tremendous progress was made. That progress has continued into the second quarter 2021, with our operating business units achieving profitability for the month of November 2020. We continue to believe we are on the path to achieving company-wide profitability by the end of the second quarter 2021. We remain vigilant and cognizant of the challenges posed by COVID-19 on tourism in our state, while remaining confident that the rebound of strong local cannabis sales experienced since the pandemic will provide for sustainable revenue growth.”
1933 Industries said its 1Q 2021 gross margin increased to 27% from 3% during 4Q 2020, and it believes the availability of its high-quality cannabis flower cultivated in-house will increase demand for the company's products, which it expects will have a positive impact on its gross margins going forward.
The company added that it anticipates increasing the volume of cannabis flower produced each month and remains on track to reach full output capacity by March 2021.
1933 Industries said it is looking to grow market share in its core market of Nevada, where it believes it is well-positioned to take advantage of a large addressable consumer market, a limited licensing regime and attractive cannabis flower pricing for premium strains.
The company also announced that its CEO Paul Rosen has been appointed to its board of directors and will take on the role of chairman. It said Terry Taouss will resign as a director effective January 30, 2021.
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