2019 started off with an even larger bang than the last couple years, at least when it comes to results from cannabis companies. According to reporting from Forbes, the top companies in the industry are reporting strong Q1 financial results, with some exceeding expectations, and others even revising their long-term goals upwards thanks to all the recent positive developments.
The marijuana industry showed its strength once again in its first quarter results of 2021. The quarter saw above-expected growth, as companies across the board reported stellar performance. We’ve got the top performers for the quarter below but first, let’s talk about the big picture and what it means for the industry moving forward.
If the results of the first quarter of 2021 are any indication, the cannabis industry is on track to have another banner year. According to the latest financial results, half of the top ten cannabis companies posted record sales, and all together earned $3.2 billion in the first three months of the year. The Canadian market has already opened its doors to recreational sales, and is quickly becoming the world’s largest cannabis market.. Read more about acb financials 2020 and let us know what you think.
The Public Cannabis Company Revenue & Income Tracker, managed by New Cannabis Ventures, shows the cannabis stocks with the highest revenue generating more than $12.5 million per quarter (C$15.5 million). This data and fact-based tracking is constantly updated with new financial documents to keep readers informed. To be included in the rankings, companies must submit an application to the SEC or SEDAR and be current. Note that we have increased the quarterly minimum earnings several times as the industry evolves, including $10 million in November 2020, $7.5 million in June 2020, $5 million in October 2019 and $2.5 million in May 2019. There are currently 44 candidate companies for inclusion, 35 of which are in US dollars and 9 in Canadian currency, compared to 41 when we reported this a few weeks ago. We added five names reporting in U.S. dollars, including Verano Holdings (CSE: VRNO) (OTC: VRNO), Ascend Wellness (CSE: AAWH.U), The Parent Company (NEO: GRAM.U) (OTC: GRAMF), Schwazze (OTC: SHWZ) and Vireo Health (CSE: TIME (OTC: VREOF). We excluded Supreme Cannabis (TSX:FIRE) (OTC:SPRWF) and Zenabis (TSX:ZENA) (OTC:ZBISF) because their returns were below the minimum level. Also note that TerrAscend (CSE:TER) (OTC:TRSSF) has switched from reporting in Canadian dollars to reporting in US dollars. We’ve also left Aphria in the Canadian section for now, but will remove it when Tilray (NASDAQ:TLRY) reports in July. In addition, we have retained GW Pharma in US dollar reporting and will remove it or replace it with its acquirer, Jazz Pharmaceutical (NASDAQ: JAZZ), depending on the allocation of its financial performance. In May 2019, we introduced an additional metric, adjusted operating income, which we described in detail in our newsletter. In the calculation, reported operating income is adjusted for changes in the fair value of biological assets, as required by IFRS. We believe this restatement improves the comparability of the companies’ IFRS and GAAP data. We note that operating income can often include one-time elements such as stock-based compensation, inventory write-downs or IPO costs, and we encourage readers to understand how these non-cash elements can affect quarterly financial performance. Many companies are moving from IFRS to US GAAP, so we will need to make fewer adjustments. Please note that our ratings only take into account actual reported earnings and not pro forma earnings. We also note that in order to be included in the tracker, non-cannabis companies must submit segment-by-segment financial reports that include not only revenue, but also operating income. Since our last update, several U.S. dollar reporting companies have filed quarterly reports, including, among the companies generating the largest revenues, Scotts Miracle-Gro (NYSE: SMG), Curaleaf Holdings (CSE: CURA) (OTC: CURLF), Green Thumb Industries (CSE: GTI) (OTC: GTBIF), Trulieve (CSE: TRUL) (OTC: TCNNF), GW Pharma, Verano Holdings (CSE: VRNO) (OTC: VRNOF), and Hydrofarm (NASDAQ: HYFM), all of which reported revenues in excess of $100 million. U.S. dollars declared. Reports from these and other companies have shown how the industry is developing, as we reported in our last weekly newsletter.
American Dollar Reporting – Tracking the revenues of public cannabis businesses
While most of the coverage is behind us, there are still a few companies that will be announcing results later in the month. Major revenue generators expected in May include Cresco Labs (CSE: CL) (OTC: CRLBF), Ayr Wellness (CSE: AYR.A) (OTC: AYRWF) and TILT Holdings (CSE: TILT) (OTC: TLLTF). According to Sentieo, Cresco Labs’ revenue is expected to increase 156% to $170 million, up 5% from the previous quarter. Ayr Wellness is expected to generate $56 million in revenue, up 66% from last year. TILT Holdings is expected to increase its revenue from the previous year by 5% to $44 million. In May, Aurora Cannabis (TSX:ACB) (NYSE:ACB) reported an unexpectedly large revenue decline from an estimated C$71.3 million. This weakness was driven by the adult merchandise sector, which fell by more than 50%. Tilray and Cronos Group, which are among the above companies reporting in U.S. dollars, also disappointed investors with their financial reports, which were overshadowed by adult weakness.
Report on the Canadian dollar – Cannabis companiesTracking government revenue
On 1. In June, Canada’s largest alcohol distribution company, Canopy Growth (TSX:WEED) (NASDAQ:CGC), will report on its fourth fiscal quarter ended March 31. Sentieo said its revenues will increase by 44% year-on-year and 1% quarter-on-quarter to C$155 million. Adjusted EBITDA is expected to improve to C$64 million from C$68 million in the third fiscal quarter. For those interested in learning more about the companies reporting in May, we publish detailed earnings forecasts for 420 Investor subscribers, including Focus List members Canopy Growth, Cresco Labs and TILT Holdings. Visit the Public Cannabis Company Revenue Tracker website to track and explore the full list of eligible companies. We recently gave our readers access to the Revenue Tracker article library. For our readers who want to stay up to date on anticipated earnings calls in this sector, we have created the Cannabis Investor Earnings conference call calendar, which is constantly being updated. Stay ahead of the crowd by subscribing to 420 Investor, the largest and most comprehensive subscription service for cannabis dealers and investors since 2013. Based in Houston, Alan draws on his experience as founder of the 420 Investor online community, the first and still largest due diligence platform focused on publicly traded stocks in the cannabis sector. Through his many connections in the cannabis community, Alan continues to find new ways to bring the industry together and promote sustainable growth. At New Cannabis Ventures, he is responsible for content development and strategic alliances. Until early 2013, Alan, who began his career on Wall Street in 1986, worked as an independent analyst and then for more than two decades in research and portfolio management. Alan is a prolific writer with over 650 articles published on Seeking Alpha since 2007, where he has 70,000 subscribers. He is a frequent speaker at industry conferences and appears regularly in the media, including the NY Times, Wall Street Journal, Fox Business and Bloomberg TV. Get in touch with Alan: Twitter | Facebook | LinkedIn | E-mail
In this section:
aawh, ACB, ascend wellness, Aurora Cannabis, ayr, ayr wellness, AYRWF, Canopy Growth, CGC, cl, Cresco Labs, CRLBF, cura, curaleaf holdings, curlf, gram, GRAMF, Green Thumb Industries, gtbif, Gti, gtii, GW Pharma, Hydrofarm, hyfm, schwazze, Scotts Miracle-Gro, SHWZ, smg, tcnnf, TER, Terrascend, The Parent Company, TILT, Tilt holdings, TLLTF, TPCO Holding, TRSSF, TRUL, trulieve, Verano Holdings, Vireo, Vireo Health, vreo, vreof, VRNO, vrnof, WEED
TerrAscend’s revenues increased 106% in the first quarter to $53.4 million
Ayr Wellness announces opening ofpharmacy in Florida
Ascend Wellness nearly triples first quarter revenue to $66.1 million
Verano sales increased 117% in the first quarter to $143 million
It is no surprise that cannabis companies are booming right now. With many companies seeing a sharp rise in stock value and seeing strong financial results, it really is not a surprise. Many cannabis companies got off to a great start for the year with Q1 financial reports. Remote Work. Read more about acb earnings expectations and let us know what you think.
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