Cresco Labs Q1 Revenue Grows 20%, Here Are The Details

Cresco Labs Inc. CRLBF CL (FSE:6CQ) released its financial results for the three months ended March 31, 2022, revealing revenue of $214 million, up 20% year-over-year.

Q1 2022 Financial Highlights

  • Gross profit excluding fair value mark-up for acquired inventory of $113 million, or 53% of revenue, an increase of 29% year-over-year

  • First-quarter adjusted EBITDA of $51 million, or 24% of revenue, an increase of 45% year-over-year

  • Wholesale revenue of $95 million

  • Retail revenue increased 44% year-over-year, to $119 million, or $2.5 million per average store open in the quarter and same-store sales increased 9% year-over-year

  • Opened four new retail stores, three in Florida and one in Pennsylvania, bringing the Company’s total retail footprint to 50

  • Launched branded product portfolio in Florida, including High Supply, Good News, Remedi and Sunnyside Chews

"Q1 was a solid quarter for the Cresco Labs team in a challenging environment for all consumer product categories. While our 10-state footprint saw a cumulative sequential contraction of 4.5%, we held or took market share in most of our states and outperformed the markets with our 2% decline. We understand that an emerging industry’s growth trajectory is rarely linear, especially a highly regulated industry with a fragmented state-by-state structure, conflicting federal and state laws, and the addition of general macro pressures," stated Charles Bachtell, co-founder and CEO of Cresco Labs. 

"Notwithstanding, we continue to execute with a clear and focused strategy to obtain market leadership with a portfolio of cannabis brands consumers love and a plan to get them on as many shelves as possible. The strategy remains constant, and the Columbia Care CCHWF acquisition announced in the quarter simply fits these stated priorities hand-in-glove. We are pairing the best consumer brands with a broad, deep and strategic footprint,” Bachtell concluded.

Balance Sheet, Liquidity, and Other Financial Information

  • As of March 31, 2022, current assets were $400 million, including cash and cash equivalents of $179 million. The company had working capital of $69 million and senior secured term loan debt, net of discount and issuance costs, of $378 million.

  • Total shares on a fully converted basis were 439.87 million as of March 31, 2022.

Social Equity and Education Development Program

  • Over the past few months, 'The Sentence of Michael Thompson' documentary has been accepted into eight film festivals and has won a Clio Award, Audience Choice Award at the South by Southwest Film Festival and Best Documentary Short Film Award at the RiverRun International Film Festival. The short film was produced by the Company’s Cresco brand and aims to help people understand the gravity of the impact of injustice on the lives of people adversely impacted by the war on drugs. This is all in furtherance of the company’s mission to leverage its platform to drive awareness and action toward cannabis legalization and criminal justice reform.

Capital Markets and M&A Activity

  • On March 23, 2022, the company announced a definitive arrangement agreement whereby Cresco will acquire Columbia Care in an all-stock transaction.

  • On May 16, 2022, the company announced the expiration of the 30-day waiting period under the HSR in connection with the proposed Columbia Care transaction.

The company is hosting a conference call and webcast to discuss its financial results on May 18, 2022, at 8:30 am Eastern Time.

Related News

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Cresco Labs One Step Closer To Acquiring Columbia Care, Here Are The Details

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Posted In: CannabisEarningsNewsPenny StocksSmall CapMarketsCharles Bachtell
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