Harvest’s Sales Rise, But Losses Widen In Full Fiscal YearApril 14, 2020
Tempe, Arizona-based Harvest Health & Recreation saw sales more than double to $116 million in its fiscal year through December, as the company continued to expand its retail footprint throughout the U.S. But while sales rose, Harvest failed to reap a profit for the year, with its adjusted EBITDA showing a loss of $34.8 million, compared with a gain of $7.9 million a year earlier.
Harvest added 21 retail locations to its operations last year, and has expanded with another five outlets this year. As of April 3, the company owned, operated, or managed 35 retail locations in seven states, including 14 dispensaries in its home market of Arizona. Moving forward, Harvest said it’s investing to boost its presence and performance in four key states—Arizona, Florida, Maryland, and Pennsylvania—by enhancing both its cultivation and retail operations in those markets.
While the company recently abandoned its proposed $850 million acquisition of Verano Holdings due to the challenging market conditions, it closed a $26 million purchase of Pennsylvania-based Franklin Labs last month. With that deal, Harvest gained a 46,800-square-foot cultivation and manufacturing facility in Reading, Pennsylvania, its first in the Keystone State.—Daniel MarstellerSubscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning. You will also receive the Cannabis edition as part of your subscription.