Cresco Labs Inc. (OTCMKTS:CRLBF) has released its Q4 and FY 2019 financial result in which the company reported YoY revenue growth of around 144%.
Cresco reports 144% revenue growth in Q4
The company reported revenue of $41.4 million in Q4, which is a 14% growth from the third quarter when it reported $36.2 million. The growth in revenue was mainly due to the company’s expansion to new markets and growth in the states where Cresco currently has a presence. Most of the revenue came from operations in Illinois, Arizona, and Pennsylvania, as well as from the HHH and Valley Ag acquisitions.
On pro forma basis, the company reported revenue of around $56 million in the quarter, which was attributable to the minority investments in Origin House and CannaRoyalty Corp. For the full year, the company reported revenue growth of 197% to $128.5 million. Net loss in the fourth quarter was $45.2 million compared to Q4 2018 when it was $4.4 million.
Cresco in a strong position to navigate through COVID-19 crisis
The company’s CEO, Charlie Bachtell, indicated that the company achieved significant milestones in 2019 that will have a significant impact on the success of the company and the industry. Bachtell indicated t6hat they have a strong balance sheet, and they can steer through the coronavirus pandemic and emerge stronger.
At the end of last year, the company had cash and cash equivalents of $49.1 million, which is a massive decline from $131.3 million that the company had at the end of 2019. Amid the COVID-19 pandemic, the company has continued to operate its dispensaries using online ordering and delivery as well as curbside pickup as it emphasizes on social distancing measures.
In 2020 the company is planning to build on its 2019 success to expand its market in Pennsylvania, Illinois, as well as California. Preliminary Q1 2020 results show that the company expects revenue of $66.5 million, which is a YoY growth of 216% and a quarter-over-quarter increase of 61%. Given the current circumstances, the company has decided to put off the acquisition of Tryke.