Ascend Wellness Declares US$85.1 Million In Revenue, US$27.8 Million Net Loss
Ascend Wellness Holdings, Inc. (CSE: AAWH.U) reported on Wednesday its financial and operational results for Q1 2022, which highlighted revenue of US$85.1 million. This is an increase from Q1 2021’s US$66.1 million in revenue.
The year-on-year increase is said to have been driven by new retail stores and higher wholesale volumes sold. But on a quarter-on-quarter basis, the quarterly revenue declined by 3.8% from Q4 2021, mainly due to wholesale pricing pressure and lower average retail basket sizes.
The firm also recorded a dip in gross margin, ending the quarter with 27.6% compared to 44.9% a year ago. It also further posted a US$27.8 million net loss, a decline from last quarter’s $16.5 million net loss but an increase from last year’s US$48.2 million net loss. The quarterly loss translates to US$0.16 loss per share.
The quarterly net loss is mainly driven by the one-time US$5 million litigation settlement cost related to the sale agreement with MedMen Enterprises (CSE: MMEN). Calibrating for this and other financial items, the firm’s adjusted EBITDA then ended at US$16.4 million compared to last year’s US$15.8 million.
The company ended the quarter with US$143.8 million in cash balance and US$78.2 million in inventory. Meanwhile, current liabilities ended at US$109.3 million.
Ascend Wellness last traded at $3.05 on the CSE, then up as much as 5% when the market opened.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.