Adam Jackson
Revenue for Chicago-based Cresco Labs (CSE: CL) (OTC: CRLBF) fell 9% in the second quarter ended June 30, compared with the same period a year ago. But the $198 million brought in during the period was a slight uptick from the first quarter.
The company, known for its branded cannabis products and Sunnyside dispensaries, attributed the sequential growth to its retail operations, which posted 4% growth, while the wholesale segment remained steady.
It also marked an 11% year-over-year rise in retail transactions and added five Sunnyside stores to its roster in Florida and Pennsylvania.
Cresco posted a net loss of $43 million for the quarter, which included $22 million of impairment charges. That’s up from the previous quarter’s $27.8 million loss and an $8.29 million loss in prior year’s period.
Still, CEO Charles Bachtell feels that the company is in a decent position for the future.
“We’re pleased to see improved profitability and cash flow in our core markets, which positions us well for the capital-efficient growth and expansion opportunities that lie ahead,” Bachtell said in a statement. “Our results are just starting to reflect the decisions we made earlier this year to support our Year-of-the-Core priorities, with much more to come.”
He highlighted a 38% sequential increase in adjusted EBITDA, emphasizing the company’s efficiency and scaling efforts.
From an operational perspective, Cresco continued its market leadership. It retained the No. 1 share position in Illinois, Pennsylvania, and Massachusetts. Additionally, its branded products, ranging from flowers to edibles, have maintained a top-ranking presence in the industry.
Cresco’s balance sheet showed current assets of $265 million, including $75 million in cash and cash equivalents. However, the company is also shouldering a senior secured term loan debt of $384 million.
Cresco also during the period cancelled its pending megamerger with Columbia Care, as well as the tied asset deal with Sean “Diddy” Combs.
