Canopy Growth Acquisition Target Acreage Reports 30% YoY Decline In Q3, Record Cannabis Wholesale Revenue In NY

Vertically integrated cannabis operator Acreage Holdings, Inc. ACRG ACRG.B.U)) ACRHF ACRDF)) reported its financial results Thursday for the third quarter ended Sept. 30, 2024.

"In the third quarter, we continued to focus on re-accelerating growth across our core states, including Connecticut, Illinois, and New Jersey, while also executing on the highly anticipated launch of non-medical sales in Ohio,” said CEO Dennis Curran. “With our strengthened financial position, we have bolstered our capacity to pursue opportunities in these markets as they continue to mature, which is expected to play a pivotal role in driving both revenue generation and improvements in Adjusted EBITDA as we close out 2024."

Q3 2024 Financial Highlights

• Consolidated revenue totaled $39.6 million, representing a 30% decrease YoY.
• Gross margin was 35%, down from 38% in the third quarter of 2023.
• Total operating expenses amounted to $22.6 million, down from $24 million in the same period of last year.
• Net loss was $22.2 million, up from a loss of $7.9 million in the previous year's quarter.
• Adjusted EBITDA came in positive at $0.6 million, representing a drop from $6.6 million in the third quarter of 2023.

Read Also: Acreage Holdings Q2 Revenue Drops, Invests In Ohio Growth As Canopy Acquisition Nears

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Q3 2024 Operational Highlights

• Launched recreational cannabis sales in Ohio at five Botanist retail locations, contributing to 38% of third-quarter revenue in the state.
• Debut Superflux flower in Illinois, with strong wholesale penetration.
• Achieved record wholesale revenue performance in New York.
• Secured a $65 million credit agreement, resulting in the repayment of prior debts.
• Gained green light for a new dispensary in Collingswood, New Jersey.

Outlook

Canopy USA, Canopy Growth Corporation‘s WEED CGC strategy to consolidate its U.S.-based assets – is set to acquire Acreage in 2025.

Curran emphasized efforts to boost growth in key markets like Connecticut, Illinois, and New Jersey while leveraging Acreage’s strong medical reputation in Ohio.

ACRHF Price Action

Acreage's shares traded 4.29% lower at $0.134 per share after the market close on Thursday afternoon.

Read Next:

• Ohio’s Cannabis Sales Reach $44M As New Customers Just Keep Coming And Demand Is Not Slowing