Acreage Flags Industry Headwinds, Price Pressure
May 30, 2023New York-based Acreage Holdings reported results for the first three months of the year, in which quarterly revenue slipped 2.7% sequentially to $56 million. The company attributed that decrease to “continued industry headwinds and decreased pricing,” along with divesting itself of its Oregon operations. Acreage logged a net loss of $16.2 million but a positive adjusted EBITDA of $10.6 million, up 51.6% sequentially.
Highlights for the quarter include the debut of operations in Connecticut as one of the inaugural group of operators in the recently launched market. It also introduced a new line of gummies in Illinois, Maine, Massachusetts, and Ohio under its flagship brand The Botanist.
“Our focus on our core footprint while upholding strict cost controls has enabled us to maintain strong margins and continue to deliver positive adjusted EBITDA despite continued volatility within the market,” said Peter Caldini, CEO of Acreage. “Notably, during the quarter, we received shareholder approval for our strategic arrangement with Canopy and Canopy USA, bringing us one step closer to satisfying what is required to close the transaction. As we work to complete our arrangement with Canopy and Canopy USA, we will continue to focus on driving our business forward with a priority on managing cash flows in a volatile trading environment.”—Danny Sullivan
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