Cannabis Co. Cresco Nearly Doubles Adjusted EBITDA YoY To $54.8M In Q4, Narrows Loss In 2023

Author: Jelena Martinovic | March 13, 2024 10:59am

Cresco Labs Inc. (CSE:CL) (OTCQX:CRLBF) (FSE: 6CQ) announced its financial and operating results on Wednesday for the fourth quarter and year ended Dec. 31, 2023.

The Chicago-based cannabis giant behind Sunnyside dispensaries reported net revenues of $188.2 in the fourth quarter, decreasing from $199.6 million in the same quarter of last year. That's down 2% year-over-year.

Cresco also reported a net income of $4.9 million for the fourth quarter compared to a $180.6 million net loss in the prior year's period and $133.4 million in the prior quarter as well as achieving positive adjusted EBITDA of $54.8 million, up from $29.6 million in the prior year's period.

"I'm proud to share that our Q4 results capped off the Year of the Core with strong bottom-line growth and margin expansion, nearly doubling our Adjusted EBITDA and achieving positive free cash flow for the year," said Cresco CEO Charles Bachtell. "Everything we did in 2023 was designed to prepare us to take advantage of the monumental opportunities ahead, including; maximizing our upcoming adult-use catalysts, capitalizing on our brands and winning with independents, and expanding our retail to provide the consumer with the best cannabis experience possible."

Q4 2023 Financial Highlights

• Gross profit was $96.1 million, up from $93.6 million in the prior year and $87.7 million in the prior year's period.
• Gros profit margin was 51.1%, up from 49.1% in the third quarter of 2023, and 43.9% in the same quarter of fiscal 2022.
• Income from operations totaled $27 million, compared to a loss from operations of $107.7 million in the prior quarter and $143.5 million in the prior year's period.
• Cash and cash equivalents and restricted cash, the end of the period totaled $108.5 million, down from $133 million at the end of the third quarter of 2023 and $121.5 million at the end of the prior year's period.

See also: Strong Margins And Cash Flow Drive Cresco’s Q3 Performance Despite Revenue Decline

FY 2023 Financial Highlights

• Net revenues amounted to $770.9 million, down from $842.7 million in the prior year.
• Gross profit was $362.4 million, down from $407 million in 2022.
• Gros profit margin was 47%, down from 48.3% in the prior year.
• Loss from operations totaled $87.8 million, compared to loss form operations of $84.3 million in 2022.
• Net loss was $180 million, down from net loss of $215.8 million in the prior year.
• Adjusted EBITDA, a non-GAAP measure – came in positive at $173.6 million, up from $172.7 million adjusted EBITDA gain in 2022.

Now read: Cresco Labs Unlocks $32M In Non-Dilutive Capital Strengthening Overall Business

CRLBF Price Action

Cresco Labs' shares traded 8.3333% higher at $1.69 per share at the time of writing on Wednesday morning.

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Posted In: CL CRLBF CSE:CL