Acreage's Q1 Revenue Slips 19% YoY But CEO Foresees 'Significant Growth Opportunities' As Canopy Growth Strategy Moves Forward

Benzinga05-31

Multi-state cannabis operator Acreage Holdings, Inc. (CSE:ACRG, ACRG.B.U))) (OTCQX:ACRHF, ACRDF))), reported its financial results on Friday for the first quarter ended March 31, 2024.

"In the first quarter, we diligently focused on cash preservation, implementing cost-saving measures, and honing our business strategy," said CEO Dennis Curran. "Our Northeastern footprint was a focal point with our entry into the New York adult-use wholesale market and the conversion of our third dispensary in Connecticut to a hybrid model serving both patients and consumers."

Acreage is on the verge of entering into Canopy Growth Corporation’s (TSX:WEED) (NASDAQ:CGC) USA ecosystem, he continued. Canopy USA holds the Company's U.S. cannabis investments, which will enable it to exercise rights to acquire Acreage, Mountain High Products, LLC, Wana Wellness, LLC and The Cima Group, LLC (collectively, Wana) and Lemurian, Inc. (Jetty).

"We are poised to seize significant growth opportunities by forging closer partnerships with industry leaders like Wana and Jetty, who are already in the process of integrating with Canopy USA," Curran continued.

Acreage is also expected to seize the opportunity in Ohio where adult-use sales are expected to launch soon.

"With our enhanced cultivation and manufacturing operations and strong dispensary network, we stand uniquely positioned to cater to the Buckeye State’s burgeoning market," Curran said.

Q1 2024 Financial Highlights

  • Consolidated revenue totaled $45.3 million, representing a year-over-year decrease of 19%.
  • Gross loss was $1.5 million, down from gross profit of $26.6 million in the first quarter of fiscal 2023.
  • Total operating expenses amounted to $21.7 million, representing a year-over-year drop of 15%.
  • Net loss amounted to $33.3 million, compared to $16.1 million in the prior year's period.
  • Adjusted EBITDA, a non-GAAP measure, came in positive at roughly $2 million, compared to an adjusted EBITDA gain of $10.6 million in the first quarter of fiscal 2023.

As yet another earnings reporting season wraps up, it is important to understand what these figures mean for the future of the industry. Hear directly for top executives, investors and policymakers at the 19th Benzinga Cannabis Capital Conference, coming to Chicago this Oct. 8-9. Get your tickets now before prices surge by following this link.

See also: New York-Based Marijuana Company, Acreage, Sees YoY Revenue Decline, But Also Lower Net Loss

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