Cresco Achieves Record Adjusted EBITDA Of $16.5M, 419% Increase QoQ

Cannabis retailer Cresco Labs Inc. CL CRLBF, which owns the Sunnyside retail brand, saw a 42% revenue growth during the second quarter.

Moreover, it reported sequential revenue growth in wholesale and retail, of 44% and 39%, respectively.

“While Q2 continued to be about building, scaling, and refining our operations in the largest and most important cannabis markets in the U.S., we are also beginning to see the fruits of our labor come to bear,” Cresco’s co-founder and CEO Charles Bachtell, said Thursday.

The Chicago-based company, which recently launched its third store since the coronavirus onset, achieved over 30% revenue increase during the quarter in each of its U.S. markets, except in Massachusetts. 

Here’s a breakdown of what the second-quarter earnings report showed:

• Revenue for the second quarter amounted to $94.3 million
• Operational gross profit as a percentage of revenue (non-IFRS measure) of 47%, versus 48% in the previous quarter
• Selling, general and administrative expenses were $45.2 million, down by $1.5 million from the prior quarter
• Positive adjusted EBITDA (non-IFRS measure) of $16.5 million, up by 419% over the quarter
• The increase can be attributed to operations in Illinois and Pennsylvania
• Net loss of $4.7 million
• Net cash used in operating activities amounted to $9.9 million, versus $40.1 million in the first quarter

“We are accelerating growth and beginning to generate substantial leverage as we scale our operations and benefit from the investments we’ve made over the past 12 months,” added Bachtell.

Courtesy photo