Columbia Care Q2 Report Reveals Profits In East Coast Market, Beats Estimates With $129.2M Revenue

Columbia Care Inc. CCHW CCHWF 3LP released its second quarter financial results for the three months ended June 30, 2023, revealing $129.2 million in revenue. That's a sequential increase of 3.8% and a 0.3% decrease from the same period last year.

Q2 2023 Financial Highlights

• Gross profit amounted to $52.1 million, up from $47 million in the prior quarter and $50.8 million in the corresponding period of the last fiscal year.
• Net loss totaled $29 million compared to $36.6 million net loss in the prior period and $54.3 million net loss in the second quarter of fiscal 2022.
• Adjusted EBITDA came in positive at $20.3 million, compared to $16.4 million in the previous quarter and $12 million in the same period last year.
• The company ended the quarter with $37 million in cash, compared to $40.2 million in the first quarter of 2023.

“The financial impact of the measures we have taken to optimize our outstanding footprint and right-size operations are leading to increased profitability,” said Nicholas Vita, CEO of Columbia Care. “Growing markets on the east coast fueled our sequential topline growth, counterbalancing further price compression in certain markets such as Florida, Illinois, and Massachusetts. We continued to reduce costs in the quarter, having eliminated over $38 million in annual expense, as we prioritize cash flow generation.”

No Deal With Cresco, But There’s Another Opportunity

On July 31, Cresco Labs Inc. CL CRLBF 6CQ and Columbia Care mutually announced they had terminated the deal under which Cresco agreed to acquire all of the issued and outstanding shares of Columbia Care. No penalties or fees were related to the mutual agreement to terminate the transaction.

An update showed definitive agreements dated November 4, 2022, to divest certain New York, Illinois and Massachusetts assets of Cresco and Columbia Care to an entity owned and controlled by Sean “Diddy” Combs were terminated last month.

Charles Bachtell, CEO and co-founder of Cresco Labs, who will join a slew of other top cannabis executives, experts and entrepreneurs at the upcoming Benzinga Cannabis Capital Conference in September as a keynote speaker, said this was “not the outcome we originally hoped for,” adding that he is “confident Cresco Labs is in a stronger position moving forward.”

Jesse Channon, chief commercial officer at Columbia Care, told Benzinga that the company’s strategy in states with a strong footprint, including New Jersey, Maryland, Virginia, and New York, will remain unchanged.

“We have organic growth potential in these markets, with new dispensaries planned, and we will continue to strengthen our presence as we expand wholesale capacity and deepen our brand penetration – both product brand and our Cannabist retail experience,” he said.

Channon added that even though partnerships have always been part of the Columbia Care story, the company now sees a different opportunity.

“The main focus right now is on taking advantage of what is arguably one of the most exciting portfolios in the industry with multiple states recently converting to or on the doorstep of converting to recreational sales,” he said.

CCHWF Price Action

Columbia Care’s shares traded 0.7624% higher at $0.4282 per share at the market close on Friday afternoon.

The Benzinga Cannabis Capital Conference, the place where deals get done, is returning to Chicago this Sept 27-28 for its 17th edition. Get your tickets today before prices increase and secure a spot at the epicenter of cannabis investment and branding.

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