U.S. Cannabis Growers Post Positive Profits, Earnings; Canadians Still Struggle
Investing.com | Aug 17, 2021 04:38
Several US-based cannabis companies reported earnings last week. Overall, the figures paint a distinctive picture that put a focus on profitability.
The portrait also provides a study in contrast—US cannabis companies are posting profits. It is not quite the same story for Canadian marijuana growers, which are still attempting to find their way to this lofty destination.
h2 Trulieve Offers Strong Showing/h2Among the recent earnings reports, Trulieve (OTC:TCNNF) (CSE:TRUL) put in a strong showing. The Florida-based cannabis grower’s second quarter report posted a gross profit of $144.5 million and an adjusted net income of $40.9 million, which was just over analysts’ estimates of $40.2 million.
The company also announced it has completed its deal to acquire Harvest Health & Recreation (OTC:HRVSF) (CSE:HARV), one of the largest acquisition in the US cannabis sector. Originally announced in May, the $2.1-billion all-stock deal, which was given final approved on Aug. 11, merged two multi-state operators and provides Trulieve with access to the market in Arizona, expanding its reach.
“Harvest will increase our addressable market by 53%, so it really is a transaction that we believe will set us up for cannabis 2.0 in this country, as we think how our hub model will evolve.”
Shares of Trulieve closed yesterday at $28.01. The stock has gained just over 19.5% in the last year.
h2 Curaleaf Sees Revenue Gains/h2Curaleaf Holdings (OTC:CURLF) (CSE:CURA) also posted impressive results, including a 166% increase in revenues compared with the same quarter the previous year.
The quarter that ended June 30 saw revenues hit $312 million.
The reporting period also saw the Massachusetts-based company close its deal to acquire EMMAC Life Sciences, the largest vertically-integrated cannabis company in Europe. The $286-million share and cash deal gives Curaleaf access to the markets in the UK, Germany, Italy, Spain and Portugal.
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Shares of Curaleaf closed yesterday at $11.54, down 4.3% on the day. In the last year, however, the stock has increased just over 33.5%.
h2 Green Thumb Beat Expectations/h2Green Thumb Industries (OTC:GTBIF) (CSE:GTII) also topped expectations with its earnings report last week. The Chicago-based company saw revenues increase 85.4% year over year, hitting $221.9 million for the quarter.
“On a year-over-year basis, we grew revenue by 85% to $222 million; more than doubled adjusted EBITDA to $79 million and continued to deliver positive cash flow,” said founder and Chief Executive Officer Ben Kovler.
Gross profit for the second quarter 2021 was $122.9 million or 55.4% of revenue compared to $63.7 million or 53.2% of revenue year-over-year.
The company also reported on its acquisition of Liberty Compassion, a Massachusetts-based medical cannabis grower and retailer, expanding Green Thumbs operations in the state.
Shares of Green Thumb closed yesterday at $30.89, down 2.4% on the day. The stock has seen spectacular gains in the last year, increasing about 97.7%.
And rounding out the upbeat earnings showing was Chicago-based Cresco Labs (OTC:CRLBF) (CSE:CL), which reported last Friday.
Its biggest headline metric was net income, which came in at $2.7 million, well ahead of analyst estimates of $1.5 million.
Cresco also reported net wholesale revenue of $108.7 million, a 97.9% increase over the same quarter in the previous year, and retail revenue of $101.3 million, a 157.6% year-over-year increase.
“Q2 was a strong quarter of head-down execution at Cresco Labs and once again we are hitting our stride as we enter the next phase of growth,” said co-founder and CEO Charles Bachtell in a statement.
Shares of Cresco Labs closed yesterday at $10.10, down about 3% on the day. In the last year, the stock has increased almost 44 %.
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