Acreage Reveals 52% YoY Increase In Q3 Revenue, 'Refreshed Strategy' Yields Results, CEO Says

Vertically integrated cannabis company Acreage Holdings, Inc. ACRG ACRDF reported its unaudited financial results late Wednesday for the third quarter of 2021, revealing a consolidated revenue of $48.2 million, representing an increase of 52% year-over-year and 9% sequentially.

"At the beginning of fiscal 2021, we introduced a refreshed strategy focused on our key priorities, which include delivering improved financial results and generating shareholder value," Peter Caldini, the company's CEO said. "Our successes throughout 2021 are the culmination of these refocused efforts to drive profitability, strengthen the balance sheet, and accelerate growth in our core markets."

Q3 2021 Financial Highlights

• Retail revenue amounted to $30.8 million, up by 6.9 million or 29% compared to the corresponding quarter of the last year. Sequentially, retail revenue improved by $2.4 million or 8%.
• Wholesale revenue totaled $17.1 million, a year-over-year and sequential increase of 119% and 10%, respectively.
• Gross profit was $23.8 million, up by 77% year-over-year.
• The gross margin increased to 49% from 43% in the third quarter of 2020.
• Total operating expenses decreased by $21.8 million or 42% to $30.3 million from the same period of last year.
• Net loss attributable to the company was $12.3 million, an improvement from a loss of $40.5 million in the third quarter of 2020.
• Adjusted EBITDA was $6.5 million, compared to a $6.9 million loss in the third quarter of last year.
• Adjusted EBITDA as a percentage of consolidated revenue was 13.5% for the third quarter of 2021.
• Ended the quarter with $29.5 million in cash and restricted cash.

Q3 2021 Operational Highlights

• Entered a definitive asset purchase and services agreement to divest the company's four Oregon retail dispensaries for total consideration of $6.5 million.
• Rebranded two medical cannabis dispensaries in Connecticut to continue positioning the company's multi-state retail stores under The Botanist brand.
• Subsequent to the quarter, Acreage completed the acquisition of cultivation, processing, and retail operations in Ohio, establishing a market leadership position in the state.

"With our latest acquisition of the Greenleaf group of companies, we have established a vertically integrated footprint in the rapidly growing Ohio market," Caldini explained. "This acquisition not only enhances our operational platform with high-quality cultivation, processing, and retail assets but will drive our financial performance from the fourth quarter onward."

ACRDF Price Action

Acreage's shares traded 5.23% lower at $1.63 per share at the market close on Wednesday.

Photo: Courtesy of Markus Winkler on Unsplash