New York-Based Marijuana Company, Acreage, Sees YoY Revenue Decline, But Also Lower Net Loss

Author: Nina Zdinjak | April 30, 2024 07:26am

Multi-state cannabis operator, Acreage Holdings, Inc. (CSE:ACRG) (OTCQX:ACRHF), reported its financial results Monday for the fourth quarter and full year ended December 31, 2023. The earnings report revealed quarterly revenue of $52.8 million, compared to $57.5 million in the same period of the prior year, while yearly revenue reached $223.4 million, versus $237.1 million in the full year 2022.

"Throughout 2023, we completed various strategic initiatives that have positioned us strongly ahead of our acquisition by Canopy USA," stated Dennis Curran, chief executive officer of Acreage. "During the quarter, we completed the anticipated expansion of our Egg Harbor, New Jersey facility, bolstering these operations with more canopy and manufacturing equipment to increase the output of in-demand, high-margin products such as edibles and concentrates. We also upgraded our cultivation capabilities in Freeport, Illinois, where we produce non-remediated flower, a unique and top-selling offering to the market”.  

Curran continued, "Our flagship brands continue to perform exceptionally well, particularly in new states where they have recently made their debut, such as New Jersey for Superflux and New York and Pennsylvania for The Botanist. This has prompted us to optimize our portfolio and focus on expanding distribution of our most successful products and brands that will cohesively fit into Canopy USA’s ecosystem alongside Wana and Jetty."

See Also: Canopy Is ‘Cautiously Optimistic’ On Cannabis Rescheduling Following Major Step Toward Entry Into US THC Market

Q4 Earnings Highlights 

• Gross margin was 32%, which compares to 35% in the same period of the prior year. 
• Gross profit was $16.66 million, versus $20.4 million in the fourth quarter of 2022.
• Net loss was $35.7 million, compared to net loss of $119.18 million in the corresponding period of 2022.  
• Adjusted EBITDA reached $4.3 million, versus $6.99 million in the fourth quarter of 2022.

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Full Year 2023 Financial Summary

• Adjusted EBITDA was $28.3 million compared to $34.8 million in full year 2022.  
• Net loss amounted to $77.96, which compares to a net loss of $168.7 million in the previous fiscal year. 
• Gross profit reached $85.65 million, versus $101.75 million for full 2022. 

Price Action

Acreage shares closed Monday market session 8.83% lower at 29 cents per share.  

Now Read: New York Gov Hochul Orders Review Of Cannabis Licensing Process After Numerous Setbacks

Photo: Courtesy of YARphotographer via Shutterstock

Posted In: ACRHF CSE:ACRG