Cresco Labs Inc. (CSE: CL) (OTCQX: CRLBF) (FSE: 6CQ), a constituent in the munKNEE American Cannabis MSO Stocks Index, released its financial results yesterday for the first quarter ended March 31, 2023.

Q1 Financial Highlights

(The information below compares Q1 2023 with Q4 2022 and all figures are in U.S. dollars.)

• Revenue: DOWN 2.7% to $194.2
• Gross Profit: DOWN 2.1% to $85.9
  • Gross Profit Margin: DOWN to 44.2% from 44.9%
• Adj. EBITDA: DOWN 1.2% to $29.3M
  • as a % of Revenue: DOWN to 15.1% from 15.5%
• Net Profit (Loss): +84.6% to $(27.8)M

Management Commentary

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

• “... Our team’s relentless prioritization of providing the highest perceived value to the consumer is paying off, evidenced by:
  • maintaining industry wholesale leadership with the number-one selling portfolio of branded products
  • and an incredibly productive retail platform.
  • Our branded products reached the shelves of 1,600 dispensaries across our 10-state wholesale footprint
  • and our Sunnyside dispensaries rang up almost 1.2 million orders.
• ...We are investing wisely and rationalizing and optimizing everything we do to:
  • generate profitable revenue expansion,
  • drive healthy margins,
  • generate more cash and
  • strengthen our balance sheet...”

Stock Performance

Cresco's stock price declined 11.4% during Q1 (January, February, March), was down another 3.2 % by May 19th but jumped 23.3% on the release of its Q1 financial report Wednesday morning and is now up almost 6% YTD. 

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