Cresco Labs Inc. (CSE: CL) (OTCQX: CRLBF) (FSE: 6CQ), a constituent in the munKNEE American Cannabis MSO Stocks Index, released its financial results today for the fourth quarter ended December 31, 2022.

Q4 Financial Highlights

(The information below compares Q4 2022 with Q3 2022 and all figures are in U.S. dollars.)

• Revenue: DOWN 5.2% to $199.6
• Gross Profit: DOWN 10.0% to $89.7
  • Gross Profit Margin: DOWN to 44.9% from 47.4%
• SG&A: UP 5.2% to $80.2
  • as a % of Revenue: UP to 40.2% from 36.2%
• Net Income (Loss): UP to $(179.9)M* from $(3.2)M
  • *includes $141M of impairment charges
• EBITDA: DOWN 25.7% to $31.7M
  • as a % of Revenue: DOWN to 15.5% from 19.8%
• Cash on Hand: DOWN 6.5% to $121.5M

Management Commentary

Charles Bachtell, CEO, and Co-Founder, said:

• "[In FY 2022] ...Despite the headwinds, the Cresco team generated:
  • a record $843 million of sales,
  • a record 61 million branded units sold (+37% year-over-year), and
  • a record 4.6 million retail transactions (+15% year-over-year).
• ...Cresco Labs has the number one most sold branded product portfolio in the U.S. for the second straight year.
• As we look toward the months ahead...you can expect:
  • continued leadership in branded cannabis,
  • rationalization and optimization of our footprint, expansion in the reach and efficiencies of our retail business,
  • generation of more free cash flow, 
  • the strengthening of our balance sheet,

  • while continuing to lead on federal reform.”

Stock Performance

Cresco's stock price declined 32.4% during Q4 (October, November, December), advanced 4.0% as of last Friday, March 10th, and has remained relatively unchanged since then despite the across-the-board negative financial metrics of Q4. 

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