Cannabis Co. Cresco Lab's Q2 Gross Profit Increases Over 9% YoY, Reports Nearly 7% Drop In Revenue

Author: Jelena Martinovic | August 08, 2024 11:56am

Cannabis producer and operator of Sunnyside dispensaries, Cresco Labs Inc. (CSE:CL) (OTCQX:CRLBF) (FSE: 6CQ) released its financial and operating results Thursday for the second quarter ended June 30, 2024.

"Our Q2 results demonstrate the sustainability of the improvements we've made to the business over the past year with $184 million in revenue at a 29% Adjusted EBITDA margin," said CEO Charles Bachtell. "It is clear our strategy is working; we are creating the brands consumers love and delivering best-in-class retail operations through Sunnyside."

Read Also: Paying Dues For Nothing? Cannabis Workers At Cresco Labs’ Illinois Facility Leave The Union, Get 15% Raises

Q2 2024 Financial Highlights

• Net revenues totaled $184.3 million, down from $197.9 million in the prior year's period.
• Gross profit totaled $94.8 million, up from $86.7 million in the same period last year.
• Gross profit margin was 51.4%, up from 43.8% in the second quarter of fiscal 2023.
• Operating income was $32.4 million, compared to a $10.7 million loss from operations in the same period of fiscal 2024.
• Net loss totaled $51.2 million, up from $43.5 million net loss in the prior year's period.
• Adjusted EBITDA (a non-GAAP measure) came in positive at $53.9 million, compared to an adjusted EBITDA gain of $40.5 million in the corresponding quarter of last year.
• Second quarter operating cash flow of $17 million and free cash flow of $11 million.

The company continues to hold the No. 1 share position in Illinois, Pennsylvania and Massachusetts.

"So far this year we've generated over twice as much operating cash flow than the first half of last year and we are putting it to work strengthening our balance sheet, investing in our core growth states with adult-use optionality, and exploring accretive, incremental M&A and other business opportunities," Bachtell continued.

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CRLBF Price Action

Cresco's shares traded 2.80% higher at $1.48 per share at the time of publishing late morning on Thursday.

Posted In: CL CRLBF CSE:CL