Cresco Points To Rising Volumes, Despite Sales Slip
May 30, 2023Chicago, Illinois-based multistate operator Cresco Labs saw revenues falter 3% sequentially in the quarter ended March 31, falling to $194 million. The company’s progress is more evident on a year-over-year basis, which shows a 32% increase of branded equivalized unit volume to 17.6 million and retail transactions at Cresco’s Sunnyside dispensaries numbering 1.2 million in the quarter, up 4%.
Cresco opened eight more retail locations in Florida and Pennsylvania in the first quarter, bringing its nationwide storecount to 63, and surpassed $1 billion in online retail sales from its store website. It logged adjusted gross profit of $89 million, or 46% of revenue, an adjusted EBITDA of $29 million, or 15% of revenue, and a first quarter net loss of $28 million.
Cresco continues to hold top market-share positions across several key markets, including the No. 1 share position in Illinois, Pennsylvania and Massachusetts, and a Top-5 ranking in Michigan. According to BDSA, the company also maintained wholesale leadership with the industry’s leading portfolio of cannabis brands, the No. 1 portfolio of branded flower and branded concentrates, and the No. 4 portfolio of branded vapes and edibles. Its national brand range includes Cresco, High Supply, Mindy’s, Good News, Remedi, Wonder Wellness Co., and FloraCal.
“Our team’s relentless prioritization of providing the highest perceived value to the consumer is paying off, evidenced by Cresco Labs maintaining industry wholesale leadership with the number-one selling portfolio of branded products and an incredibly productive retail platform,” said Cresco CEO Charles Bachtell. “Our branded products reached the shelves of 1,600 dispensaries across our 10-state wholesale footprint and our Sunnyside dispensaries rang up almost 1.2 million orders.
“After attending the first ever Senate hearing on the SAFE Banking Act, I’m encouraged by the progress at the federal level to resolve the industry’s unique banking challenges,” Bachtell continued. “I’m also energized by continued cannabis acceptance and normalization at the state level, with Missouri and Connecticut launching adult use sales, Kentucky passing medical cannabis and Delaware plus potentially Minnesota legalizing cannabis. We are investing wisely and rationalizing and optimizing everything we do to generate profitable revenue expansion, drive healthy margins, generate more cash and strengthen our balance sheet.”—Danny Sullivan
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