Multi-State Players Trim Losses In 2023
March 19, 2024As adult-use sales spread into more states, the leading cannabis companies in the U.S. are seeing revenue grow amid shrinking net losses. In the last week, Ascend Wellness Holdings, The Cannabist Company, Ayr Wellness, and Cresco Labs all reported results for fiscal year 2023, with two of the four multi-state operators showing revenue growth and all four showing signs that the adult-use cannabis market is gaining ground despite the slow progress toward federal legalization.
New York’s Ascend Wellness Holdings saw net revenue reach $518.6 million on a 28% rise. Losses were nearly halved in 2023, at $48.2 million. The seven-state operator opened six new dispensaries in fiscal 2023, with two in Ohio and Illinois and one each in Massachusetts and Michigan; after the close of the fiscal year, Ascend opened an additional dispensary in Ohio bringing the company’s total to 35. “This growth was fueled by expansion of both retail and wholesale businesses, including a 21% increase in the retail business driven by store openings and strategic acquisitions and 47% growth in the third-party wholesale business,” said CEO John Hartmann.
The Cannabist Company’s revenue for 2023 held steady at $511 million, with its yearly loss more than cut in half at $174 million. The company currently operates 85 dispensaries across 15 markets and is planning on opening four new Cannabist-branded locations, with one each in New Jersey and Maryland, and two in Virginia. CEO David Hart said “significant cost reduction programs resulted in adjusted EBITDA and net loss improvements over 2022.”
Ayr Wellness reached $464 million in revenue, up 10%, as adjusted EBITDA climbed by more than 50% to $114 million. The company added 10 dispensaries during the fiscal year, bringing Ayr’s total to 90. Ayr also expanded into Ohio, securing three licenses in the state. President and CEO David Goubert called 2023 “a transformational year” for Ayr, noting, “The conversion from medical-only to adult-use sales is one of the most significant, proven revenue drivers in any given cannabis market. Currently, only 15 of Ayr’s 91 dispensaries operate in adult-use markets.”
Finally, Cresco Labs reported revenue of $711 million, down from $840 million a year earlier. Adjusted EBITDA for 2023 was $174 million. The company’s net losses were down in 2023, to roughly $180 million from $216 million in 2022.—Shane English
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