Some of the Biggest Cannabis Companies Will Soon Release Their Fourth Quarter Financials – New Cannabis Ventures

the Cannabis Public Company Revenue and Revenue Tracking, managed by New Cannabis Ventures, ranks the top revenue-generating cannabis companies. This data and fact-based tracker will be continuously updated with new financial documents so readers can stay up to date. Companies must file with the SEC or SEDAR and be current in order to be included.

When we launched this resource in May 2019, companies with quarterly revenue over US$2.5 million were eligible. As the industry has grown and more companies have gone public, we have increased the minimum several times thereafter, including increasing to US$5 million in October 2019 , to US$7.5 million in June 2020, to US$10 million in November 2020 and in the United States. $12.5 million in August 2021.

Due to the rapid growth of the cannabis industry, we have raised the minimum to US$25 million (C$32 million) to qualify for what we now call the Senior List and introduced a Junior List with a minimum of US$12.5 million (C$16.0 million). ) in September. At the time of our last update at the end of December, 36 companies had qualified for inclusion on the senior list, including 30 filing in US dollars and 6 in Canadian currency. The junior list now includes 13 reports in US dollars and 4 in Canadian dollars. On a combined basis, the Public Cannabis Company Revenue & Income Tracker includes 53 companies. There were no additions or deletions this month. We plan to add more companies in the coming months, and due to ongoing or recently completed mergers, we also plan on removals. We note that Intercure (TASE:INCR) (NASDAQ:INCR), which reports in Israeli currency, qualifies for the junior list, but we have not added it yet due to its different reporting currency.

In May 2019, we added an additional measure, “Adjusted operating income”, as detailed in our newsletter. The calculation takes reported operating income and adjusts it for any change in fair value of biological assets required by IFRS accounting. We believe that this adjustment improves the comparability of companies across IFRS and GAAP accounting. We note that operating income can often include one-time items such as stock compensation, inventory write-downs, or public listing fees, and recommend readers understand how these non-cash items may impact on the quarterly financial statements. Many companies are moving from IFRS to US GAAP accounting, which will reduce the need for adjustments. Please note that our rankings only include actual reported earnings and not pro forma earnings. We also note that companies with non-cannabis operations must provide segment-level financial reports that detail not only revenue but also operating profit for their operating profit to be included in the tracker. Currently, Jazz Pharma (NASDAQ: JAZZ) and Tilray (TSX: TLRY) (NASDAQ: TLRY) do not provide this information.

Since our last update, only Tilray (TSX: TLRY) (NASDAQ: TLRY) has released a report among companies reporting in US currency. It was expected to generate aggregate revenue of $173 million, with adjusted EBITDA of $14.3 million, but actual results for its fiscal second quarter ending November were revenue of $155 million. dollars and adjusted EBITDA of $13.8 million. We had shared a negative outlook for Tilray’s cannabis business just before the report, and the actual results were worse than expected. Overall cannabis revenue fell 17% sequentially to $58.8 million despite growth in its international business. Its Canadian adult sales fell 30% from the first quarter to $34.9 million.

US Dollar Reporting – Public Cannabis Company Revenue Tracking

In February, Scott’s Miracle-Gro (NYSE: SMG) will report its first fiscal quarter. The company previously announced in advance that its Hawthorne Gardening sales were down about 40% from a year ago. According to Sentieo, the company’s overall revenue is expected to have decreased by 25% to $561 million, with adjusted EBITDA of -$1 million and EPS of -$0.72. MedMen (CSE: MMEN) (OTC: MMNFF) is also expected to report its second quarter in February, while Jazz Pharma (NASDAQ: JAZZ) and Innovative Industrial Properties (NYSE: IIPR) will report their fourth quarter results. Cronos Group (TSX: CRON) (NASDAQ: CRON), which remains behind in its third quarter filings, is also expected to report in February, with revenue expected to have increased 20% sequentially to $18.7 million. dollars.

The largest MSOs will begin reporting fourth quarter results in early March, with calls scheduled for Green Thumb Industries (CSE: GTII) (OTC: GTBIF) on 3/1 and Curaleaf (CSE: CURA) (OTC: CURLF) on 3/3 . GTI is expected to have generated revenues of $239 million, up 35% from a year ago, with adjusted EBITDA of $83 million. up 35%. Curaleaf revenue is expected to increase 42% to $326 million, with adjusted EBITDA up 46% to $78 million.

For companies reporting in Canadian currency, High Tide (TSXV:HITI) (NASDAQ:HITI) and Organigram (TSX:OGI) (NASDAQ:OGI) both reported results in line with or above expectations in January . High Tide climbed to No. 3 in the Canadian rankings, with sales increasing sequentially to C$53.9 million in its fourth fiscal quarter ending in October. The company had revenue of around C$70 million in the first quarter, which would put it in second place. Organigram’s first-quarter revenue of C$30.4 million increased 22% sequentially and 57% from a year ago.

In February, Canopy Growth (TSX: WEED) (NASDAQ: CGC) and Aurora Cannabis (TSX: ACB) (NASDAQ: ACB) from the senior list will report with Valens (TSX: VLNS) (NASDAQ: VLNS) and Humble & Smoke (CSE: HMBL) (OTC: HUMBF) from the junior list. According to Sentieo, Canopy Growth is expected to have experienced a 9% decline in revenue in its fiscal third quarter to C$139 million, with adjusted EBITDA of -C$110 million. An unknown is how the company will report income from its German division, which it is divesting. It contributed C$11.9 million to second-quarter revenue. Aurora Cannabis is expected to have generated C$58 million in its fiscal second quarter, down 14% from a year ago, with an adjusted EBITDA of -C$12 million. Valens is expected to have generated revenue of C$24.6 million in its fiscal fourth quarter ending October, up 53%.

For those who want more information on the companies reporting in January, we are posting full earnings previews for subscribers at 420 Investorincluding for the Focus list members mentioned here, Canopy Growth, Cronos Group, Curaleaf, Green Thumb Industries, Scotts Miracle-Gro and Valens.

Visit the Public Cannabis Company Revenue Tracking to track and explore the full list of eligible businesses. We recently created a way for our readers to access our Revenue Tracker article library. For our readers who want to stay on top of anticipated earnings calls in the industry, we have created and continuously updated the Cannabis Investor Earnings Conference Call Schedule.

Get a head start by signing up for 420 Investorthe largest and most comprehensive premium subscription service for cannabis traders and investors since 2013.

Alan Brochstein, CFA

Based in Houston, Alan leverages his experience as an online community founder 420 Investor, the cannabis industry’s first and still largest public equity-focused due diligence platform. With his vast network in the cannabis community, Alan continues to find new ways to connect the industry and facilitate its sustainable growth. AT New Cannabis Companies, he is responsible for content development and strategic alliances. Prior to focusing on the cannabis industry in early 2013, Alan, who began his career on Wall Street in 1986, worked as a freelance research analyst after more than two decades in research and portfolio management. Prolific author, with more than 650 articles published since 2007 on Looking for Alphawhere he has 70,000 subscribers, Alan is a frequent speaker at industry conferences and a frequent source to the media, including the NY Times, Wall Street Journal, Fox Business and Bloomberg TV. Contact Alan: Twitter | Facebook | LinkedIn | E-mail

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