Several US-based cannabis companies reported profits last week. All in all, the numbers paint a distinctive picture that emphasizes profitability.
The portrait also offers a study in contrast: American cannabis companies are making a profit. It's not quite the same story for Canadian marijuana growers, who are still trying to find their way to this lofty destiny. Trulieve (OTC:) (CSE:) put in a strong performance. The Florida-based cannabis grower posted a second quarter gross profit of $144.5 million and adjusted net income of $40.9 million, slightly ahead of analyst estimates of $40.2 million.
The company also announced that it has completed its deal to acquire Harvest Health & Recreation (OTC:) (CSE:), one of the largest acquisitions in the US cannabis industry. Originally announced in May, the $2.1 billion all-stock deal, which was finally approved on August 11, has merged two multi-state operators and gave Trulieve access to the Arizona market, expanding its reach.
"The harvest will increase our addressable market by 53%, so it's really a transaction that we think will prepare us for cannabis 2.0 in this country as we think how our hub model will evolve."
Shares of Trulieve closed at $28.01 yesterday. The stock is up just over 19.5% over the past year. Curaleaf sees revenue rise
Curaleaf Holdings (OTC:) (CSE:) also posted an impressive 166% increase in revenue compared to the same quarter of the previous year.
In the quarter ended June 30, sales reached $312 million.
During the reporting period, the Massachusetts-based company also closed its deal to acquire EMMAC Life Sciences, the largest vertically integrated cannabis company in Europe. The $286 million stock and cash deal gives Curaleaf access to markets in the UK, Germany, Italy, Spain and Portugal.
Curaleaf shares closed at $11.54 yesterday, down 4.3% on the day. In the past year, however, the stock has risen just over 33.5%. exceeded expectations with its win last week. The Chicago-based company saw revenues rise 85.4% year-over-year to $221.9 million for the quarter.
"Year-over, revenue grew 85% to $222 million; adjusted EBITDA more than doubled to $79 million and continued to generate positive cash flow," said Founder and Chief Executive Officer Ben Kovler.
Gross profit for the second quarter of 2021 was $122.9 million or 55.4% of revenue, compared to $63.7 million or 53.2% of revenue year-over-year.
The company also reported on its acquisition of Liberty Compassion, a Massachusetts-based grower and marketer of medicinal cannabis, which is expanding Green Thumbs' operations in the state.
Shares of Green Thumb closed at $30.89 yesterday, down 2.4% on the day. The share has risen spectacularly in the past year, with an increase of about 97.7%.
And the positive results shown were Chicago-based Cresco Labs (OTC:) (CSE:), which took place last Friday.
The largest statistic was net income, which came in at $2.7 million, well above analyst estimates of $1.5 million.
Cresco also reported net wholesale revenues of $108.7 million, up 97.9% year-over-year, and retail revenues of $101.3 million, up 157.6% year-over-year .
"Q2 was a strong quarter of head-down execution at Cresco Labs and once again we are ramping up as we enter the next phase of growth," said co-founder and CEO Charles Bachtell in a statement.
Shares of Cresco Labs closed at $10.10 yesterday, down about 3% on the day. In the past year, the stock has increased by almost 44%.
