LEEF Brands Announces Financial Results, Milestones and Strategic Plans for 2024 in Supportive Cannabis Industry Environment


LEEF Brands, cannabis and wellness company, recently released its financial results for the year ending 2023 and for the first quarter of 2024. The company’s financial performance indicates continued sales growth and operational efficiency improvements.

The company reported net sales of $7.9 million in the first quarter of 2024, marking a 35% increase from the $5.9 million recorded in the last quarter of 2023. This growth is combined with a gross profit of $3.2 million and a gross margin of 40.6%, demonstrating a substantial increase of 25% in efficiency compared to the entire year of 2023. Moreover, the company achieved an adjusted EBITDA of $1.77 million, a substantial rise of 347% from the previous quarter.

For the full year of 2023, LEEF Brands achieved net sales of $30.5 million, an increase of 13% over 2022. The gross profit for the year stood at $9.9 million, with a modest growth of 4% compared to 2022. The adjusted EBITDA also saw a jump, reaching $1.64 million, a 162% increase from the previous year.

Operational Highlights from 2023

LEEF Brands was able to achieve record gross margins of 40.6% in the early months of 2024, and reported positive cash flow from operations throughout 2023 and into the first quarter of 2024. The company has reported that it reduced selling, general, and administrative (SG&A) expenses by 36% in 2023 versus 2022. On top of this, LEEF Brands is preparing to plant at Salisbury Canyon Ranch in the second quarter of 2024, following its acquisition of the 1,900-acre property in Santa Barbara County.

Despite these positive outcomes, LEEF Brands recorded a net loss of $1.5 million in the first quarter of 2024, slightly higher than the $1.4 million loss during the same period in 2023, mainly due to 280e tax accruals. The company’s cash reserves decreased to $4.5 million at the end of the first quarter, down from $6.4 million at the end of 2023.

Looking Ahead to FY2024

Management believes LEEF Brands is positioned for further development and sales growth, particularly with the operational ramp-up at Salisbury Canyon Ranch. This project, backed by a $7 million note payable, is expected to contribute to the company’s production capacity and overall growth in the coming year.

Cannabis Company Stocks and Investment in 2024

The company reported its results with the tailwinds of a supportive environment for the industry overall. The cannabis industry is currently experiencing a resurgence in investor interest, buoyed by several positive developments. The recommendation by Secretary Becerra to reschedule cannabis has injected optimism into the sector, improving prospects for businesses and investors alike. With current projections, the market is set to expand to accommodate further sales growth as well.

The global cannabis market is anticipated to expand, with total market projections suggesting it could reach nearly $149 billion by 2031. This growth is driven by broader acceptance and legalization of cannabis for medical and recreational uses across the U.S. and worldwide.

States like New York are improving their cannabis programs, while Ohio is creating new retail opportunities, attracting fresh investment. The U.S. cannabis market itself is expected to grow substantially, with retail sales potentially hitting $53.5 billion by 2027. This growth will likely be fueled by adult-use sales and the expansion of legalized markets.

With all of this, several U.S. states are anticipated to legalize recreational cannabis in 2024, potentially leading to federal changes in the near future. These changes could signal further opportunities for growth and investment in the cannabis sector, promising an exciting year ahead for companies and investors.

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