Hydrofarm reports Q4 EPS (33c), consensus (19c)

Reports Q4 revenue $47.184M vs $61.461M last year. Bill Toler, Chairman and Chief Executive Officer of Hydrofarm, said, “Successful execution of our restructuring plan and related cost savings efforts throughout the year enabled us to deliver positive Adjusted EBITDA( and Free Cash Flow in 2023. Our margins improved as we focused on higher margin products and enhanced our operational efficiency. Our cash balance grew and our inventory levels decreased as we managed our working capital aggressively. Our revenue base became more diverse, with further penetration into geographies outside of the US/Canada and into sales channels serving non-cannabis CEA applications, including food, floral, and lawn & garden. We are well underway with the second phase of our restructuring strategy, focused primarily on the durables side of our business, and in conjunction with several productivity initiatives expect to realize additional cost savings in 2024. Despite the industry softness, we believe that we have made significant progress and we are confident in the long-term fundamentals of our business and the growth opportunities ahead.”