Cannabis giant, Acreage Holdings, (CSE: ACRG.A.U, ACRG.B.U), (OTC: ACRHF, ACRDF) reported their third-quarter earnings for 2020 after the market closed last night. The company maintains a diverse cannabis portfolio, with cultivation, manufacturing, and retail operations in the United States, though they are domiciled in British Columbia, Canada.
The company’s reported revenue was $31.7 million, a 42% increase compared to the same period in 2019. It also was a 17% increase compared to the second quarter this year. Partner revenue was $17 million, which is a drastic increase of 79% compared to the second quarter of 2020. Acreage Holdings reported a net loss attributed to Acreage was $35.7 million, while adjusted net loss attributable to Acreage was $14.3 million.
The company’s gross margin was 42.5%, which represents an 80 basis point decrease compared to the same period in 2019 and a 110 basis point increase from the second quarter of 2020. Acreage Holdings attributes this year over year gross margin decline to a significant wholesale opportunity in Massachusetts, which didn’t repeat this year.
The company’s company-owned, same store sales growth was 36%, effectively making this the seventh-consecutive quarter of double-digit same store sales comparisons. Same store sales growth was 22% for the entities managed by Acreage.
Adjusted EBITDA was a loss of $6.9 million, compared to an $11.7 million loss over the same period in 2019. Managed entities reported a loss of $4.7 million compared to a $0.6 million loss in 2019.
Bill Van Faasen, the Interim Chief Executive Officer of Acreage Holdings, said “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.”
“I am pleased with another solid quarter of improving fundamentals. Our refocused strategy continues to work. Operational excellence led to improved financials and a stronger balance sheet,” said Van Faasen.
Acreage Holdings is, hopefully, on an upwards trend after the full wrath of 2020 was unleashed on us all. The company was among those companies who furloughed employees during the coronavirus pandemic, temporarily terminating 122 employees from field operations teams and the corporate office. They also temporarily stopped all business activities including wholesale and dispensaries in Maryland and North Dakota.
In other exciting news for Acreage, the company has started adult-use sales in Massachusetts with their dispensary The Botanist to be located in Shrewsbury, Massachusetts. The Botanist began sales on November 10th.