Cresco Labs Inc. (CSE: CL; OTCQX: CRLBF), one of the largest vertically integrated multi-state cannabis operators in the United States, has reported its financial results for the first quarter ended March 31, 2020. 

About Cresco Labs

Headquartered in Chicago, Cresco cultivates, manufactures, and sells medical cannabis and medical cannabis products in the United States. It offers cannabis in flower, vape pens, and various forms of extracts, including tinctures, capsules, salves, sublingual oils, and trans-dermal patches, culinary-backed and cannabis-infused edibles and fruity confections through 20 dispensaries in Florida.

First Quarter 2020 Financial Highlights (All financial information is in U.S. dollars and comparative to the previous quarter.)

• Revenue: increased 60% driven by:
  • increased cultivation and retail efficiency in Illinois & Pennsylvania and
  • operational improvements in California.
• Operational Gross Profit as a Percentage of Revenue: declined to 48% from 51% as the result of:
  • lower margin revenue in California which made up a higher portion of total revenue
• SG&A: increased due to:
  • non-core costs associated with the close of three transactions and
  • payouts of $1.4 million in share-based compensation.
• Net loss: was $13.4M
• Adjusted EBITDA: increased by 11% driven primarily by:
  • higher revenues and increased operational gross profit in Illinois and Pennsylvania.
• Cash & Equivalents: increased 40%

Stock Performance

Over the past 12 months the company stock has declined from US$11.73/share back on May 28th, 2019 to a low of US$2.05/share in mid-March and currently trades at US$4.92/share which is 27% below its Y/E 2019 price.