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Cresco Expands In Florida, With U.S. Retail Footprint Reaching 50 Locations

May 24, 2022

Ongoing retail expansion in markets like Florida and Pennsylvania boosted Illinois-based Cresco Labs in the first quarter, as the company posted revenue up 20% year-on-year to $214 million. Compared with the previous quarter sales were down 2%. Adjusted EBITDA rose a robust 45% year-on-year to $51 million, representing 24% of revenue.

With wholesale revenue of $95 million, Cresco said it held its position as the top-ranked seller of branded cannabis products in the U.S., with leading share in flower, concentrates, and vapes. Retail revenue has grown 44% since the first quarter of 2021 to $119 million, or $2.5 million per average store. The company opened four new stores in the quarter–three in Florida and one in Pennsylvania–to bring its nationwide retail presence to 50 locations. Those Florida openings also marked the introduction of Cresco’s product portfolio to Florida’s booming medical market, including the High Supply, Good News, Remedi, and Sunnyside Chews brands.

“Our team continues to drive toward the macro thesis of cannabis becoming a core U.S. consumer product industry,” CEO Charlie Bachtell told analysts. “We’re building the most strategic geographic footprint, we’re obtaining material positions in each state, and we’re proficient in all verticals of the value chain, while emphasizing branded products and distribution to drive the greatest long term value.

“Our pro forma footprint is expected to be at $31 billion total addressable market by 2025, according to BDSA, including all 10 of the industry’s top 10 revenue states,” he continued. “We expect to have the number-one branded and/or retail share position in five markets, Illinois, Pennsylvania, Colorado, Virginia, and Massachusetts, as well as eight states each contributing over $100 million in annual revenue in 2023.” Bachtell added that he believes the company’s geographic diversification will help insulate it from “market to market volatility,” while providing economies of scale, wider margins, and brand equity within the portfolio.—Danny Sullivan

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