Acreage Holdings, Inc. (OTCQX:ACRHF) (OTCQX:ACRDF) (CSE:ACRG) (CSE:ACRG) released its financial results for the first quarter ended March 31, 2023, disclosing Total Revenue of $56.0 millionA decrease of 1.6% A decrease of 2.6% compared to $56.9 million in Q1 2022 and $57.5 million in Q4 2022.
The year-on-year and sequential decrease was primarily due to the continued industry headwinds and the reduction in pricing as a result of competitive pressures in various markets. Additionally, the year-over-year decrease was also due to the divestiture of the company’s operations in Oregon and was partially offset by the acquisition of the Maine dispensary in 2022. After adjusting for acquisitions and divestitures, revenue for Q1 2023 was relatively consistent with Q1 2022.
Q1 2023 Financial Highlights
Total gross profit was $26.6 million compared to $29.5 million in Q1 2022.
Overall gross margin was 48% compared to 52% in Q1 2022.
Adjusted EBITDA was $10.6 million in Q1 2022 compared to adjusted EBITDA of $8.6 million and adjusted EBITDA of $7.0 million in Q4 2022.
Net loss was $16.2 million compared to $13.9 million in Q1 2022.
Acreage ended Q1 2023 with $14.3 million in cash and cash equivalents.
“Our focus on our core footprint while maintaining rigorous cost controls has enabled us to maintain strong margins and deliver positive adjusted EBITDA despite continued volatility within the market,” said Peter Caldini, CEO of Acreage. “In the first quarter, we were thrilled to expand our addressable market in Connecticut with the launch of adult-use sales at our thriving The Botanist Montville location, and most recently in the second quarter, our adult-use -Started Serving Consumers Using Danbury Stores. Additionally, continuing our commitment to diversifying our product portfolio, we introduced our innovative herbal products to consumers in Illinois, Maine, Massachusetts and Ohio under our flagship brand, The Botanist. Introduced fast-acting gummies.
Caldini continued, “Notably, during the quarter, we received shareholder approval for our strategic arrangement Canopy (NASDAQ: CGC) and Canopy USA, brings us one step closer to satisfying what is needed to complete the transaction. We have experienced many transformative accomplishments to bring Acreage to where it is today, and we could not be more excited for the bright future ahead of it under Canopy USA. As we work to finalize our arrangement with Canopy and Canopy USA, we will continue to focus on growing our business with a priority on managing cash flow in a volatile business environment.
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