Columbia Care, Inc. (NEO: CCHW) (CSE: CCHW) (OTCQX: CCHWF) (FSE: 3LP) reported their third quarter results for 2020 last night. Overall, the cannabis company reported a very strong quarter.
Combined revenue for Q3 totaled $54,162. This is a whopping 64% quarter over quarter increase, with Q2’s revenue reaching $33,012. Q3’s results are an even bigger jump from the same time last year, increasing by 145%.
Columbia Care truly shined in other areas as well, the company’s combined adjusted gross profit increased 300% year over year, Q3’s total capping off $21,157 – coming from just $5,290 in Q3 2019. The company reported Q2 2020’s combined adjusted gross profit to be $11,908, so the quarter over quarter jump was still pretty significant at 78%.
In addition to increasing both profit and revenue, the cannabis company also increased their gross margin. While not a huge Q2 to Q3 jump, 36% and 39% respectively, the increase was still there. Columbia Care definitely increased their gross margin year over year, reporting a gross margin of 24% in Q3 2019.
Additionally, combined adjusted EBITDA was reported at $4,226 for Q3 of 2020, with Q2 2020 reporting $4,734.
In addition to overall updates and earning reports from Columbia Care, they went into depth about each of the states they operate in – and what exactly is on the horizon.
They gave so many updates, this is by no means exhaustive information. But, some key highlights are: prepping for Arizona’s transition into an adult-use market in 2021, signed a definitive agreement in Q3 to acquire LA-based Project Cannabis, opened a new dispensary in Illinois, with revenue up in essentially every state they’re in. Ultimately, the company is making moves everywhere they are – and those plans are set to continue in motion during 2021.
“As we look ahead, we will continue to focus on driving growth and profitability in our core markets while capitalizing on opportunistic M&A,” said Nicholas Vita, CEO of Columbia Care. “We will also continue executing on our organic growth strategy, as reflected by our expansion programs in AZ, IL, MA, MO, NJ, NY, UT, and VA along with our recent medical cultivation license award in West Virginia. Our balance sheet remains strong and our recent debt financing continues to reflect the confidence the institutional community has in the operational foundation we have built. We look forward to maintaining significant momentum through the fourth quarter and into 2021 as even more of our markets convert to adult-use sales.”
“Our growth strategy and operational discipline resulted in Columbia Care generating another quarter of record results,” Vita continued. “While we are delighted to announce significant year-over-year and sequential growth in revenue, gross margin and EBITDA, transitioning to an EBITDA positive business is the milestone we have been eager to surpass. We completed our acquisition of The Green Solution (TGS) in the third quarter, solidifying our leadership position in the world’s second largest cannabis market. TGS adds profitable scale to our national portfolio of brands and brings considerable expertise to ensure our transition to adult use market frameworks is successful in every respect. It opens the door for Columbia Care to further press our leadership position and leverage our know-how and experience across markets nationally. I am extremely proud of the team’s unwavering focus on day to day execution in each market, as well as our continued national focus on quality, innovation, customer care and community service. As we integrate and leverage our pipeline of acquisitions, I expect the power and uniqueness of our operating platform to further distinguish Columbia Care in each of our core functional areas. With strong momentum and political tailwinds, we are reiterating our previously stated revenue, gross margin, and adjusted EBITDA guidance for the full year 2020.”