Acreage Holdings, Inc. (OTCQX: ACRHF, ACRDF) reported its financial results for the third quarter of 2021 ending September 30, 2021, with total revenue increasing 52% to $48.2 million, an increase of 9% sequentially. Yahoo Finance only recorded one analyst estimate for earnings of $34 million, which Acreage beat. Acreage also delivered a net loss of $12.3 million, an improvement from a loss of $40.5 million for the same time period in 2020.
Retail revenue was $30.8 million, an increase of $6.9 million or 29% compared to last year. Acreage said that the year-over-year growth was primarily driven by increased demand and production across various states, new store openings, and the consolidation of several Maine dispensary locations and their conversion to adult-use sales. However, the growth in retail revenue was slightly muted as a result of lower sales in the Oregon retail dispensaries and the sale of the company’s Florida operations. Sequentially, retail revenue for the quarter improved by $2.4 million or 8% compared to the second quarter of 2021.
Wholesale revenue was $17.1 million, an increase of $9.3 million or 119% compared to the third quarter of 2020. The year-over-year growth in wholesale revenue was primarily driven by increased capacity and maturing operations at the Company’s Pennsylvania, Massachusetts, and Illinois cultivation facilities, resulting in increased supply and improved product mix in each of the respective markets. Additionally, the Company’s wholesale operations in California, acquired in the second quarter of 2021, contributed to an increase in wholesale revenue in the third quarter. Sequentially, wholesale revenue for Q3 2021 improved by $1.5 million or 10% compared to the second quarter of 2021.
Peter Caldini, CEO of Acreage Holdings, said: “At the beginning of fiscal 2021, we introduced a refreshed strategy focused on our key priorities, which include delivering improved financial results and generating shareholder value. Our successes throughout 2021 are the culmination of these refocused efforts to drive profitability, strengthen the balance sheet, and accelerate growth in our core markets.”
Mr. Caldini continued, “Over the third quarter, we divested our retail assets in Oregon to reprioritize our operations and position our business to capitalize on growth opportunities in our growing core markets. This disciplined approach has delivered another solid quarter of financial performance, with sequential revenue growth, reduced operating expenses, and strong gross margins, resulting in a third consecutive quarter of positive Adjusted EBITDA.”
“With our latest acquisition of the Greenleaf group of companies, we have established a vertically integrated footprint in the rapidly growing Ohio market. This acquisition not only enhances our operational platform with high-quality cultivation, processing, and retail assets but will drive our financial performance from the fourth quarter onward. We are confident that the solid foundation we have built over the past year will position us for continued success as we close out the fiscal year and enter our next phase of growth in 2022.”