Q3 2024 Cresco Labs Inc Earnings Call Transcript
Key Points
- Cresco Labs Inc (CRLBF) reported $180 million in revenue for Q3 2024, with a strong 53% adjusted gross profit margin and 29% adjusted EBITDA margin.
- The company achieved a 5% year-over-year improvement in adjusted EBITDA, generating $51 million in the quarter.
- Cresco Labs Inc (CRLBF) generated its best operating cash flow yet, hitting $49 million in the quarter and $103 million year-to-date.
- The company holds leading branded market share positions in key states like Illinois, Pennsylvania, and Massachusetts.
- Cresco Labs Inc (CRLBF) has successfully increased its market share in Ohio, achieving a top 3 branded market share position in Q3 2024.
- Revenue was down 2% sequentially, driven by a decline in Illinois and continued retail fragmentation and price compression.
- The Florida initiative for cannabis legalization did not pass, which was a disappointment for Cresco Labs Inc (CRLBF).
- The company expects Q4 revenue to be down mid-single digits from Q3 due to a late Q3 dip and consumer slowdown in Illinois.
- Price compression remains a challenge, particularly in unregulated and synthetic hemp products competing for consumer attention.
- Cresco Labs Inc (CRLBF) noted softness in Ohio's limited adult-use conversion and Illinois' consumer slowdown, impacting revenue.
Good day, and welcome to Cresco Labs' third-quarter 2024 earnings conference call. (Operator Instructions) Please note, this event is being recorded. I would now like to turn the call over to T.J. Cole, Senior Vice President, Corporate Development and Investor Relations for Cresco Labs. Please go ahead.
Thank you. Good morning, and welcome to Cresco Labs' third-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 third earnings press release, which has been filed on SEDAR and is available on our Investor Relations website. These preliminary results for the third quarter 2024 are provided prior to completion of all internal and external reviews and therefore are subject to adjustment to the filing of the company's quarterly financial statements.
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