SLANG Worldwide Q1 Revenue Drops 35% YoY, Touts E-Commerce Segment Improvement Thanks To CBD Gummy Brand
Portfolio Pulse from Nina Zdinjak
SLANG Worldwide Inc. reported a 35% YoY drop in Q1 revenue, citing increased competition in core markets and a decline in the overall cannabis market in Colorado. However, the company saw improvements in its e-commerce segment and Vermont wholesale channel. Despite a decrease in gross profit and an adjusted EBITDA loss, SLANG reduced operating expenses and increased sales in new channels.
May 30, 2024 | 1:43 pm
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SLANG Worldwide Inc. reported a significant 35% YoY drop in Q1 revenue, primarily due to increased competition and a decline in the cannabis market in Colorado. However, the company saw growth in its e-commerce segment and Vermont wholesale channel. Despite a decrease in gross profit and an adjusted EBITDA loss, SLANG managed to reduce operating expenses.
The significant drop in revenue and gross profit, along with an adjusted EBITDA loss, are negative indicators for SLANG Worldwide Inc. However, the growth in the e-commerce segment and Vermont wholesale channel provides some positive outlook. The immediate market reaction has been negative, with shares trading 7.32% lower.
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