Benzinga | May 28, 2021 10:38AM EDT

Cannabis Co Cresco Labs Posts Record Q1 Revenue Of $178M

Vertically integrated cannabis company Cresco Labs Inc. (CSE:CL) (OTCQX:CRLBF) (FSE: 6CQ) reported a 9.9% quarter-over-quarter and 168.8% year-over-year revenue growth amounting to $178 million in the first quarter of 2021.

The Chicago-based company achieved record wholesale and retail revenue over the same period, totaling $95.6 million and $82.8 million, respectively.

"In Q1, we delivered sequential growth from existing assets, demonstrated our ability to reach and sustain #1 market share positions in two of this industry's top-five states, and we're gearing up to repeat that success in more markets this year," Charles Bachtell, co-founder and CEO of Cresco Labs, said Thursday.

Here's a breakdown of what the first-quarter earnings report showed:

* Gross profit was $87 million, accounting for 48.8% of revenue, up by 16.8% sequentially and 268.9% year-over-year.

* Adjusted EBITDA came in positive at $35 million, representing an increase of 16.5% quarter-over-quarter and 507.2% year-over-year.

* Net wholesale revenue grew by 5.7% sequentially and 150.8% year-over-year

* Retail revenue, coming from 24 stores, increased 15.2% quarter-over-quarter and 193.2% year-over-year.

* As of March 31, Cresco had $381.7 million in assets.

* Cresco expects to post annualized revenue run-rate of more than $1 billion by the year-end.

"We're also pleased to take this opportunity at the outset of the year to make the transition to U.S. GAAP, remove the break-out of certain one-time items, and provide investors with clarity on the transition." Bachtell disclosed.

Q1 2021 Operational Highlights

In April, Cresco closed the acquisition of Bluma Wellness Inc. (CSE:BWEL) (OTCQX:BMWLF).

The company took over the cannabis retailer in an all-stock transaction worth $213 million.

Over the quarter, Cresco also wrapped up the purchase of Verdant Creations' four dispensaries in Ohio, located in Cincinnati, Chillicothe, Newark and Marion, bringing its total footprint in the Buckeye State to five stores.

In February, the cannabis company bought Massachusetts-based Cultivate Licensing LLC and BL Real Estate LLC for a total of $158 million, which enabled it to expand its cultivation footprint by approximately 42,000 square feet of the flowering canopy with additional 20,000 square feet of potential indoor expansion. The deal also included two operating stores in Leicester and Framingham and one Worcester-based dispensary poised to kick off cannabis sales in the second quarter of 2021.

Photo by Jeff W on Unsplash