Cresco Labs Inc. (CSE: CL) (OTCQX: CRLBF) (FSE: 6CQ), a constituent in the munKNEE American MSO Pot Stock Index, today released its financial results for the quarter ended June 30, 2022.

Q2 Financial Highlights

All financial information is provided in U.S. dollars unless otherwise indicated and compared with the previous quarter.

• Revenue: +1.8% to $218.2M
  • Retail: +3.4% to $123M
  • Wholesale: No Change @ $95M
• Adj. Gross Profit: +5.0% to $112.8M
  • As % of Revenue: increased to 51.7% from 50.1%
• SG&A: +2.5% to $77.9M
• Adj. EBITDA: -2.0% to $50.6M
  • As % of Revenue: declined to 23.2% from 23.6%
• Net Loss in Income: -65.0% to $(8.3)M
• Cash/Cash Equiv.: +102.7% to $89.6M

Q2 Operational Highlights

• Maintained its position as no. 1 U.S. seller of branded cannabis products with leading share positions in the flower, concentrates and vape categories.
• Achieved the leading branded share position in Massachusetts and maintained no. 1 share position in both Illinois and Pennsylvania.
• On July 8, the Columbia Care shareholders approved the previously announced, all stock acquisition by Cresco Labs with the transaction expected to close around the end of 2022.

Management Commentary

Charles Bachtell, CEO and Co-Founder, said:

• “...We recognize the challenges currently facing the cannabis industry and the tough macro backdrop we are operating against...[but] remain focused on...holding and growing market share, driving efficiencies across the business to maintain margins, and preparing for the integration of Columbia Care to drive future growth...
• [The acquisition of Columbia Care will] more than doubles our retail footprint, give us a number one branded or retail share position in five markets, and optimize our operational footprint...giving us the breadth and depth that we believe ensures growth, diversifies our revenue mix and creates an industry leader.
• Over the next three years, growth will come from the transition to adult use in seven large markets: New Jersey, New York, Pennsylvania, Ohio, Virginia, Florida and Maryland. Our combined footprint with Columbia Care, will give us exposure to all of these markets and leading positions in several...[and,] arguably, the highest value footprint in cannabis – 180 million Americans and all 10 of the 10 highest projected 2025 revenue states..."

Stock Performance

The company's stock price:

• went DOWN 42.5% during Q2 (April 1st to June 30th), and
• has gone UP 37.5% since then (as of August 12th), but
• is still DOWN 47.8% YTD,
• and DOWN 79.4% from its peak price in 2021.

In comparison, the munKNEE American MSO Pot Stock Index, consisting of the 13 largest such stocks by market capitalization,

• was DOWN 49.7% during the April to June period, 
• has only gone UP 13.2% since then (as of August 12th), but
• is still DOWN 51.8% YTD,
• and DOWN 77.8% from its peak price in 2021.

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