Q2 2024 Cresco Labs Inc Earnings Call Transcript
Key Points
- Cresco Labs Inc (CRLBF) reported $184 million in revenue for Q2 2024, with a 52% adjusted gross profit margin and a 29% adjusted EBITDA margin.
- The company achieved a 565 basis point improvement in adjusted gross profit margin year-over-year and reduced annualized adjusted SG&A spend by approximately $34 million.
- Cresco Labs Inc (CRLBF) generated $54 million in operating cash flow year-to-date, which is $32 million more than the first half of last year.
- The company maintains leading market share positions in key states like Illinois, Pennsylvania, and Massachusetts, and is gaining share in competitive markets like Florida.
- Cresco Labs Inc (CRLBF) is strategically expanding its footprint in Ohio, Pennsylvania, and Florida, with plans to open additional dispensaries and increase cultivation capacity.
- The cannabis industry faces ongoing pricing pressures, which could impact Cresco Labs Inc (CRLBF)'s margins.
- The start of the adult-use program in Ohio is described as a 'light start,' with rules not fully established, potentially delaying significant revenue contributions.
- The company faces challenges in the New York market due to a slow start to the legal program and competition from the illicit market.
- Cresco Labs Inc (CRLBF) anticipates a slight negative impact on margins in the second half of the year due to the initial stages of adult-use in Ohio.
- The company is cautious about capital allocation in New York, focusing on higher ROI opportunities elsewhere, which may limit growth potential in that state.
Good day, and welcome to Cresco Labsâ Second Quarter 2024 Earnings Conference Call. All participants will be in listen-only mode. (Operator Instructions) After todayâs presentation there will be an opportunity to ask questions. (Operator Instructions) Please note this event is being recorded.
I would now like to turn the call over to TJ Cole, Senior Vice President, Corporate Development and Investor Relations for Cresco Labs. Please go ahead.
Thank you. Good morning, and welcome to Cresco Labsâ second quarter 2024 earnings conference call. On the call today we have Chief Executive Officer and Co-Founder, Charles Bachtell; Chief Financial Officer, Dennis Olis; and President, Greg Butler, who will be available for the Q&A.
Prior to this call, we issued our second quarter earnings press release, which has been filed on SEDAR and is available on our Investor Relations website. These preliminary results for the second quarter 2024 are provided prior to the completion of all
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
