Debra BorchardtSlang Worldwide Inc. (CNSX: SLNG) (OTCQB: SLGWF) released its financial results for the quarter and year ending Dec. 31, 2023 as revenue in the fourth quarter fell 37% to C$7.42 million versus last year’s revenue of C$11.78 million in the 2022 fourth quarter. Slang attributed the decline to a decrease of C$4.13 million in core market sales in Vermont and Colorado. The company also experienced a decrease of C$0.92 million in distribution sales, partially offset by an increase of C$0.30 million in emerging market sales, and an increase of C$0.30 million in e-commerce sales.
On a positive note, Slang was able to cut operating expenses in the quarter by 19%. The total comprehensive loss of C$7.45 million fell by 56% from last year’s C$16.96 million.
Full-year results
Revenue for fiscal year 2023 was C$35.68 million versus C$38.19 in 2022. The company said the reduction was primarily driven by a decrease of C$2.65 million in its distribution sales and a decrease of C$1.27 million in emerging market sales, partially offset by an increase of C$0.70 million in core market sales and an increase of C$0.66 million in e-commerce sales. Vermont sales grew in 2023, while Colorado sales fell.
The total comprehensive loss was C$19.59 million in fiscal year 2023, compared with C$29.65 million in 2022, representing a 34% decrease year-over-year. The reduction was primarily driven by a decrease in operating expenses of C$6.73 million and an increase in gross profit of C$2.17 million.
“In 2023, we took a deliberate approach to advancing our strategy of profitable growth, creating a leaner, more nimble SLANG. As a result, we ended the year with increased gross profit, higher margins, and lower operating expenses which resulted in significantly lower total comprehensive loss and lower adjusted EBITDA loss,” said CEO John Moynan in a statement. “With the fourth quarter historically our seasonally lowest revenue quarter, we took the opportunity to further fortify our business and refine our product offering, which will help us make meaningful progress on the path to profitability.”
Despite the drop in sales in Vermont, Slang created a wholesale business that garnered C$1 million in sales. The company said that new licenses continue to be awarded in the state.
Slang also continues to release new products while also looking at strategic alternatives for the company. It has C$9.04 million in cash and restricted cash on Dec. 31, 2023, compared to C$11.92 million on Dec. 31, 2022
Moynan continued, “Looking to 2024, I believe that we are well positioned to outperform the market as we continue to identify opportunities to increase shareholder value as part of our strategic review.”
