Cresco Labs Inc. (OTCQX: CRLBF) released its financial results for the year ended December 31, 2020. Revenue for the fourth quarter of 2020 was $162.3 million, an increase of $9.0 million or a 6% increase over the third quarter of 2020. Cresco Labs reported a net loss for the fourth quarter of $23 million versus last year’s net loss of $45 million. The company beat the Yahoo Finance analyst estimate for revenue of $161 million in the quarter.
For the full year, Cresco delivered revenue of $476.3 million, an increase of $347.7 million or a 271% increase over 2019’s revenue of $128 million. The company said that growth was driven by cultivation expansion in Illinois and Pennsylvania as well as strong sequential same-store growth. Cresco trimmed the net loss from $65 million in 2019 to $36 million in 2020.
“2020 was a remarkable year for Cresco Labs. We dedicated our resources to the most strategic markets, grew our leadership as the number one wholesaler of branded cannabis products, executed high efficiency retail, and generated substantial operating leverage as we scaled. We laid out our objectives at the beginning of the year and we executed on what we set out to accomplish, resulting in the largest year-over-year revenue growth among tier one MSOs,” said Charles Bachtell, Co-founder and CEO of Cresco Labs. “In 2021, cultivation expansions are underway and we are executing accretive M&A as we repeat our playbook in more states. Our best-in-class execution was on display in 2020 and it’s what you can expect from Cresco Labs for years to come.”
The company is on solid ground financially with current assets at the end of December at $361.8 million, including cash and cash equivalents of $136.3 million. The company had a working capital of $167.1 million and total debt, net of issuance costs of $184.5 million.
Following the end of 2020, Cresco has been busy building its cannabis empire with numerous acquisitions. In January 2021, Cresco agreed to buy Bluma Wellness Inc. (OTCQX:BMWLF), a vertically integrated operator in Florida. On February 16, 2021, the company closed its acquisition of four Ohio dispensaries previously operated by Verdant Creations, LLC and its affiliates. On March 18, 2021, Cresco said it would acquire all of the issued and outstanding equity interests in Cultivate Licensing LLC and BL Real Estate LLC, a vertically integrated Massachusetts operator.