Vertically integrated cannabis company Acreage Holdings, Inc. (OTCQX:ACRDF) reported its financial results for the first quarter ended March 31, 2022.
“We achieved our fifth consecutive quarter of positive Adjusted EBITDA and sequentially improved our gross margin, while continuing to grow revenue despite industry headwinds and pandemic related challenges in Q1,” Peter Caldini, the company’s CEO, commented on the first quarter financial results.
Q1 2022 Financial Highlights
- Total revenue was $56.9 million, an increase of $18.5 million or 48% compared to Q1 2021.
- Total gross profit for was $29.5 million, an increase of $8.9 million or 43% compared to Q1 2021.
- Gross margin of 52% compared to 48% in Q4 2021, and 54% in Q1 2021.
- Total operating expenses increased by $13.4 million, or 71% to $32.2 million, from Q1 2021.
- Adjusted EBITDA increased to $8.6 million, compared to Adjusted EBITDA of $1.6 million in the first quarter of 2021 and a slight improvement from Adjusted EBITDA of $8.5 million in the fourth quarter of 2021.
- Net loss attributable to Acreage was $12.7 million, compared to $(7.8) million in the first quarter of 2021.
- Ended the quarter with $32.6 million in cash and cash equivalents.
Q1 2022 Operational Highlights
- Expanded the company’s premier brand portfolio with the launch of Superflux, currently available in dispensaries across Illinois, Massachusetts, and Ohio.
- Enhanced customer selection and experience by introducing a variety of new and innovative products under The Botanist brand in select markets.
- Completed a licensing agreement with botanica to manufacture and distribute Mr. Moxey’s top-selling and award-winning THC mints in Acreage’s operating markets as regulations allow, including Ohio, New Jersey, Pennsylvania, Illinois, New York, and Maine.
- Strengthened the senior leadership team with the appointment of Dennis Curran as its chief operating officer and the addition of Steven Strom to its bord of directors.
Subsequent Events
- Commenced adult-use operations in New Jersey as part of an inaugural group of cannabis operators permitted to launch adult-use sales in the state.
- Closed the sale of the company’s cultivation and processing facility in Medford, Oregon for total consideration of $2.0 million, and closed its dispensary in Powell, Oregon.
- Completed the consolidation and conversion of its dispensary in Brewer, Maine to adult-use.
- Appointed Corey Sheahan as general counsel.
Price Action
Acreage’s shares traded 4.60% lower at $ 1.412 per share at the market close on Thursday afternoon.
Photo: Courtesy of Markus Winkler on Unsplash
