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13. November 2020
Corporate News Market Watch News North America

Acreage Reports Year-on-year Revenue Increase of 42% in Q3 2020

New York cannabis cultivator and retailer, Acreage has reported Q3 results which show revenue was $31.7 million, a 42% increase compared to the same period in 2019, and a 17% increase compared to the second quarter of 2020.

Acreage Reports Year-on-year Revenue Increase of 42% in Q3 2020

Source: Google.com

Acreage is a multi-state operator of cannabis ‎cultivation and retailing facilities in the U.S., including the company’s national retail store ‎brand, The Botanist. The company has a wide range of national and regionally available cannabis products include the award-winning Botanist brand, the Tweed brand, the Prime medical brand in Pennsylvania, and the Innocent edibles brand in Illinois among others. Acreage also owns Universal Hemp, LLC, a hemp subsidiary dedicated to the distribution, marketing and sale of CBD products throughout the U.S.

The Company also has in place agreements with Canadian-based Canopy Growth, which will see Canopy take a significant shareholding in Acreage should certain criteria be met. Canopy recently announced that Acreage would be the distributor of a new line of CBD-infused beverages, which the company is looking to market in the U.S.

In another significant development Acreage began selling both its new Class D “floating” shares (OTCQX: ACRDF) and Class E “fixed” shares (OTCQX: ACRHF) on the OTCQX® Best Market operated by OTC Markets Group earlier in the quarter.

Q3 financial highlights included:

  • Reported revenue was $31.7 million, a 42% increase compared to the same period in 2019, and a 17% increase compared to the second quarter of 2020.
  • Partner revenue was $17.0 million, a 79% increase compared to the same period in 2019, and a 2% increase compared to the second quarter of 2020.
  • Company-owned same store sales growth was 36%, marking the seventh consecutive quarter of double-digit same store sales comparisons.
  • Same store sales growth for our managed entities was 22%.
  • Gross margin was 42.5%, an 80 basis point decrease compared to the same period in 2019, and a 110 basis point increase compared to the second quarter of 2020. The year over year gross margin decline was in large part due to a one-time significant wholesale opportunity in Massachusetts, which did not repeat this year.
  • Net loss attributable to Acreage was $35.7 million, while adjusted net loss* attributable to Acreage was $14.3 million.
  • Adjusted EBITDA* was a loss of $6.9 million compared to a loss of $11.7 million in the same period in 2019.
  • Managed Entities’ EBITDA* was $4.7 million compared to a loss of $0.6 million in the same period in 2019.

I am pleased with another solid quarter of improving fundamentals,” said Bill Van Faasen, Interim Chief Executive Officer of Acreage.  “Our refocused strategy continues to work.  Operational excellence  led to improved financials and a stronger balance sheet.  Our core profitability is in sight in the first half of 2021. Much work remains, but we are absolutely on the right path both short and long-term, with a team that’s as energized and results-focused as it’s ever been.”

Source | Acreage