East Coast Drives Growth For This Cannabis Company, Narrows Q3 Net Loss By Nearly 70% YoY
Author: Jelena Martinovic | November 15, 2023 09:12am
Acreage Holdings, Inc. (CSE:ACRG) (ACRG.B.U) (OTCQX:ACRDF) reported its financial results Tuesday for the third quarter ended Sept. 30, 2023, revealing consolidated revenue of $56.5 million, an 8% year-over-year and 2.8% quarter-over-quarter decrease.
The New York-based cannabis company also reported its eleventh consecutive quarter of positive adjusted EBITDA of $6.6 million, compared to an $8.8 million adjusted EBITDA gain in the same quarter of 2022.
Q3 2023 Financial Highlights
- Gross profit was $21.27 million, compared to gross profit of $21.26 million in the corresponding quarter of last year.
- Net operating loss was $2.5 million, down from $16.4 million in the third quarter of 2022.
- Net loss amounted to $7.8 million, down from $25 million in the prior year’s period.
- As of Sept. 30, total assets amounted to $355.78 million, down from $360.57 million on Dec. 31.
- Ended the quarter with $15.1 million in cash and cash equivalents and $9.7 million of restricted cash, with such funds restricted to be used for eligible capital expenditures.
Key Q3 And Recent Operational Highlights
- Recorded a 27% increase in Connecticut sales for the nine months ended Sept. 30, compared to the nine months ended Sept. 30, 2022, with The Botanist Danbury achieving the highest individual store growth with a 64% increase year-over-year.
- Achieved strong results in New Jersey, including the highest statewide year-over-year sales growth with an increase of 34% for year-to-date compared to the same period of last year. Further, New Jersey wholesale revenue reached $1 million for the month of Aug. 2023.
- Commenced construction on a new dispensary in Vernon, Connecticut, which will be the company’s third hybrid location in the state. The Botanist Vernon is anticipated to open in April 2024.
“I’m proud of the progress the team made in Q3 building a company focused on strong brands and implementing a cost structure that will allow for future growth,” Dennis Curran, the company’s CEO said. “In particular, New Jersey and Connecticut remain strong areas of performance for our business, once again delivering record results and robust year-over-year growth.”
ACRDF Price Action
Acreage’s shares traded 3.1554% lower at $0.275 per share after the market close on Tuesday afternoon.
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Photo: Courtesy of Giorgio Trovato on Unsplash
Posted In: ACRDF CSE:ACRG
