Despite Revenue Uptick, Columbia Care Posts $38M Loss for Q3

Acquisition by Cresco Labs expected to close in Q1 2023.

Columbia Care Inc. (NEO: CCHW) (CSE: CCHW) (OTCQX: CCHWF) (FSE: 3LP) posted a $38 million loss for the third quarter of 2022, despite a slight surge in revenue for the same three months. That brings Columbia Care’s losses for the calendar year to $120.4 million.

CEO Nicholas Vita pointed the finger at “persistent macroeconomic headwinds that directly and materially impact the consumer wallet” for some of the company’s financial woes, and put a rosy spin on the company’s position, particularly given that its merger with Cresco Labs has yet to close.

“Our third quarter results are a testament to the embedded growth in our strategic footprint and the operational excellence we have developed over time,” Vita said in a press release, and pointed to Columbia Care’s $133 million in quarterly revenue, an increase of 2.4% from the previous quarter.

Revenues for the year hit $385 million by Sept. 30.

Vita said revenues have grown in some of the company’s newer markets, such as Virginia, and stabilized in more mature markets, such as California and Colorado.

But Vita also warned that the industry is still facing “a more challenging operating environment over the next 12-18 months,” and the company’s outlook is “flat to low-single digit growth” for revenue in the final quarter of the year.

The company also forecast that the merger with Cresco will close “around the end of the first quarter of 2023.”

For the third quarter, Columbia Care’s top-performing U.S. state cannabis markets by revenue, out of the 18 where it holds licenses, were California, Colorado, New Jersey, Ohio, and Virginia.

John Schroyer

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