Columbia Care Inc. (CSE: CCHW) (OTCQX: CCHWF) reported financial and operating results for the third quarter ending in September. Revenue increased 144% over last year’s third quarter to $132 million. It was a 21% increase over the second quarter. The net loss for the quarter was $36 million.
Despite the jump in revenue, Columbia Care is revising its guidance for 2021 to $470M – $485M Revenue, $85M – $95M Adjusted EBITDA and 46% Adjusted Gross Margin for Full Year 2021.
The company said it was good primarily driven by the impact of unanticipated regulatory delays, for example delays in opening of dispensaries in Massachusetts (Boston), New Jersey and West Virginia; delayed approvals for dispensary expansion in Illinois; delayed implementation of adult use in New Jersey; and a later than expected close of the Medicine Man transaction.
In addition, wholesale pricing dynamics in some markets, such as California and Pennsylvania, and competitive market share dynamics in Florida.
“With sequential revenue growth of over 20%, Columbia Care has continued to outpace the market while also maintaining margin discipline to achieve record company profitability, reflected in increased EBITDA margin and gross margin for the quarter.”
“We are pleased to report accelerating momentum and another record quarter for Columbia Care as fundamentals continue to improve and we execute on our national strategy,” said Nicholas Vita, CEO of Columbia Care. “With sequential revenue growth of over 20%, Columbia Care has continued to outpace the market while also maintaining margin discipline to achieve record company profitability, reflected in increased EBITDA margin and gross margin for the quarter.”
Vita continued, “In the third quarter, we opened new dispensaries in New Jersey and Missouri, and, in line with our technology roll out, we progressed with the launch of Cannabist locations, with eight conversions completed to date, including Downtown Boston. We continued to gain market share and grow margins in Florida, where we will be converting all our dispensaries to Cannabist from Columbia Care. As expected, we are seeing tangible operational benefits driven by our proprietary technology solutions, such as Forage.”
“Our team continues to execute on our strategic objectives and to be the first to seize upon tactical milestones as they materialize. We were the first operator to offer whole flower in Virginia and New York, and we are prepared to be among the first to transition in scale to adult use in New Jersey, New York, and Virginia – all of which are expected to grow into multi-billion dollar markets. In October, we choreographed the largest single-day national flower brand launch in the history of the industry. Furthermore, we have growth initiatives underway throughout the country that will accelerate our trajectory and profitability at each inflection point in the coming quarters. We see momentum building into 2022 and beyond as we optimize our national portfolio and launch brands throughout our markets.”
Third quarter 2021 results include a full quarter of Green Leaf Medical. Since the close of the CannAscend transaction on July 1, 2021, the Company will no longer report Combined results.