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Cannabis Co Columbia Care Q1 Revenue Spikes 220% YoY To $92.5M, CEO Touts Significant Growth 'Across Both The Top And Bottom Line'

May 17, 2021 8:33 am
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Cannabis Co Columbia Care Q1 Revenue Spikes 220% YoY To $92.5M, CEO Touts Significant Growth 'Across Both The Top And Bottom Line'

Columbia Care Inc. (NEO: CHW) (CSE:CCHW) (OTCQX:CCHWF) (FSE:3LP) reported Monday its financial and operating results for the first quarter of 2021.

The New York-based company generated $92.5 million in the first three months of the fiscal year, representing a year-over-year increase of 220%.

Nicholas Vita, CEO of Columbia Care, attributed combined revenue results to “organic growth and further integration progress on key California and Colorado acquisitions.”

Upon closing the acquisition of Colorado-based The Green Solution in September, Columbia Care expanded to California by purchasing Project Cannabis for roughly $69 million.

Over the quarter, the company additionally boosted its retail footprint in the Golden State by acquiring another San Diego-based store in a $15 million deal. In California, the company reported that sequential revenue nearly tripled over the period. In Colorado, revenue increased by 27% year-over-year.

As a multi-state operator in the medical cannabis industry, Columbia Care holds licenses across 15 jurisdictions in the U.S. and the European Union.

Here’s a breakdown of what the first-quarter earnings report showed:

  • Record quarterly combined adjusted gross profit of $37.7 million, which spiked 316% compared to the same quarter of 2020.
  • The combined adjusted gross margin was 41%, versus 42% in the prior period, and 31% in the same period of last year.
  • Combined adjusted EBITDA came in positive at $10.4 million, up by $20 million year-over-year.
  • Ended the quarter with $176 million in cash.

“Recognizing the tremendous opportunity we have before us, we continue to deepen our state, regional and national footprint by adding scale to capitalize on additional upside in rapidly expanding medical programs and, in particular, in markets transitioning to adult-use across the country,” Vita explained.

New York, New Jersey And Virginia As Key Markets

Investing in New York, New Jersey, and Virginia markets will “cement our position as the industry leader on the east coast,” Vita added.

Last month, the company revealed that it's in the process of acquiring a 34-acre cultivation facility in New York in a $42.5-million stock-and-cash deal worth $42.5 million.

The first dispensary that Columbia Care launched in New Jersey was the retail location in Vineland, which opened for customers in June, six months prior to its debut in Virginia with a store in Portsmouth.

Recent Moves

Columbia Care also raised some $140 million in financing over the quarter, mainly through a deal with Canaccord Genuity Corp.

Some of its recent moves include the rollout of its new retail brand, dubbed Cannabist, and the launch of a solid-fill cannabis powder capsule for medicinal use under the Ceed trademark in the United Kingdom.

Photo by Kimzy Nanney on Unsplash

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