Earnings season is in full swing as companies begin to deliver the first quarter earnings. Across the board it was tough for hydroponic companies, while many of the cannabis producers seem to start the year strong. Some even teased that next quarter would begin the inclusion of New Jersey sales.
One story we’ve been following for months got resolved. MedMen agreed to surrender its New York assets to Ascend Wellness. After a months-long nasty court battle, MedMen agreed to let go and while MedMen said it got $15 million more, Ascend’s purchase went from 86% of the property to 99% – so it didn’t really seem like they squeezed much more out of the deal. The interim MedMed CEO Michael Serruya is now the Chair and the company named Edward Record as the new CEO.
There were so many companies delivering numbers, that we’ll just high the high points here.
Trulieve announced its first quarter revenue increased to $318.3 million from $193.8 million last year and 4% sequentially. The company also said it expects to report over a billion in cannabis sales in 2022.
Both Curaleaf and Acreage Holdings reported that their sales declined sequentially from the fourth quarter. However both companies were able to begin adult-use sales in New Jersey in April and that is likely to turn things around quickly.
On the hydroponics side, Urban-gro, Hydrofarm and Agrify all reported earnings this week. Sales were either flat or just barely above last year for each company. However, they are all reiterating previous guidance and believe their market will recover by the end of the year.
On a positive note, Green Thumb Industries showed how it had navigated headwinds of falling prices and increasing costs. This company continues to deliver solid quarters and this was another. Revenue rose 25% year-over-year to $243 million.
Next week is the MJ Unpacked conference in New York.