Ayr Wellness Revenue Grows 222% YoY To $91.3M, Cannabis Operator Raises Full 2021 Guidance To $800M

The vertically integrated cannabis multi-state operator Ayr Wellness Inc. AYR OTCQX: ,AYRWF) reported its second-quarter financial results on Monday with revenue of $91.3 million, below Seeking Alpha estimates of $108.26 million, though representing a 222% improvement from the same quarter of 2020.

Financial Highlights 

• Adjusted gross profit amounted to $53.1 million, up by 194% from the corresponding period of last year;
• Operating loss was $24.9 million, which compares to a loss of $5.4 million in the same quarter of 2020;
• Adjusted EBITDA was a gain of $27.4 million, up by 225% from the second quarter of the previous year;
• EBITDA margin was 30%, versus 29.7% in the same period of 2020.

“In the last 12 months, we’ve laid out an ambitious plan for growth – growing our footprint and building our brands on the foundation of being the largest-scale producer of high-quality flower in the country. Because everything starts with the plant,” Jonathan Sandelman, CEO of Ayr Wellness, stated. “I am incredibly pleased to see those plans becoming reality, with Q2’s exceptional 222% year-over-year growth in revenue and 56% growth over last quarter. We are seizing a massive opportunity to position ourselves to be the best cannabis CPG company in the US. Today our brands are in over 280 stores, up 3 times year-over-year, and they aren’t slowing down. “

Second Quarter and Recent Milestones 

• Announced proposed $20 million acquisition of Cultivauna, LLC, the owner of Levia, a top-selling brand of cannabis-infused seltzers;
• Announced the proposed acquisition of Herbal Remedies, adding two dispensaries in Illinois; won an additional retail license in Bloomington-Normal, Illinois with a partner, Land of Lincoln;
• Announced the proposed acquisition of Tahoe Hydroponics Company, LLC an award-winning cultivator and one of Nevada’s top producers of high-quality flower;
• Hired over 400 new employees across all levels, deepening their bench in marketing, technology and operational professionals focused on driving scalable processes across our regional footprint;

Outlook

Based on the results to date, management is targeting 3Q21 revenue of approximately $100 million, which reflects the growth of over 10% quarter-over-quarter and 211% year-over-year. Adjusted EBITDA on a US GAAP basis is expected to be in line with the second quarter, following accelerated investments in branding, new markets and growth projects.  

The Company is increasing its target for 2022 revenue to $800 million, up from $725 million, and is reiterating guidance for 2022 Adjusted EBITDA of $300 million reflecting substantial investments in growth.

Price Action 

Ayr Wellness’ shares closed Monday market session 1.46% lower at $27.70 per share. 

Photo: Courtesy of Elsa Olofsson on Unsplash