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 third quarter ended September 30, 2022.

Third Quarter 2022 Financial Highlights

(The information below compares Q3 2022 with Q2 2022 and all figures are in U.S. dollars.)

• Revenue: DOWN 3.5% to $210,484
• Gross Profit: DOWN 13.7% to $99,726
  • Gross Profit Margin: DOWN to 47.4% from 53.0%
• SG&A: DOWN 2.2% to $76,200
• Net Income (Loss): DOWN by 60.8% to $(3.249)
• EBITDA: DOWN 17.5% to $41,744
• Cash on Hand: UP 40.8% to $130,042

Management Commentary Regarding Q3 Operational Highlights

Charles Bachtell, CEO and Co-Founder, said:

• "...We maintained our industry position as the No. 1 wholesaler of branded cannabis and the No. 1 branded product portfolio chosen by consumers.
• We took actions to reduce costs to position ourselves for long-term improvement including closing of underperforming facilities and the sell through of related inventory. This had a short-term negative impact on gross margin in Q3, [but]...aligned...our cost structure and optimize our operations ahead of closing the Columbia Care transaction and in furtherance of our commitment to improved margin growth in the coming quarters.
• We made significant progress toward closing the Columbia Care transaction with the signing of definitive agreements to divest assets in New York, Illinois and Massachusetts for total consideration of up to $185 million.
• ...We continue to see legislative and regulatory progress at the state level and we’ve never been closer to achieving federal reform on cannabis than we are today. We continue to lead these efforts in these areas as we understand the legislative process is the ultimate unlock of the potential and value for this industry and our stakeholders."

Stock Performance

Cresco's stock price advanced marginally during Q3 (July, August and September), advanced 34.0% as of last Friday, November 11th, and another 2.4% since then. That being said, its stock price is DOWN 48.3% YTD.

More By This Author:

Jushi Holdings Releases Mixed Preliminary Q3 Financials
Planet 13 Financial Metrics In Q3 All Declined
Aurora Cannabis Q1 Financials Show Improvement: Stock Jumps 18%