Adam Jackson
TerrAscend Corp. (TSX: TSND) (OTCQX: TSNDF) posted its second-quarter 2023 financial results ending June 30, showing growth in revenue and an improvement in profit margins.
The latest report showed a net revenue of $72.1 million, marking a 3.9% uptick sequentially and a year-over-year rise of 12.7%. The revenue figure, which was previously announced, beat Yahoo analyst expectations by nearly a million dollars.
The company’s gross profit margin experienced a hike, reaching 50.2% from 48.8% sequentially – a noteworthy rise from the 37.5% in the second quarter last year.
Although TerrAscend saw a net loss of $12.9 million for the quarter, it was an improvement from the $19.2 million loss in the previous period and net income of $16.9 million in the second quarter last year. Adjusted EBITDA also experienced a boost to $12.8 million, up from $12.2 million in the prior quarter and a meaningful rise from $8.8 million in the same period last year.
The company also secured private placements amounting to $21 million, closed a commercial loan deal with Stearns Bank worth $25 million, and paid down $37 million of its term loan in Pennsylvania.
The firm said it also launched its Legend brand in Michigan, opened its fifth Cookies dispensary in the same state, and expanded its Cookies partnership into Maryland.
Driving the company’s revenue growth, according to Executive ChairmanJason Wild, was the full-quarter acquisition of the Allegany dispensary in Maryland and robust same-store sales growth in Michigan.
Still, the quarter posed some challenges. General and administrative expenses rose to $30.5 million, which included one-time costs such as M&A expenses related to Maryland acquisitions, TSX listing costs, and legal settlement fees.
Looking forward, TerrAscend remains optimistic about 2023. The company expects a net revenue of at least $305 million and adjusted EBITDA from continuing operations to touch $58 million. If realized, these figures would represent YoY growth of 23% and 49%, respectively.
