U.S. multi-state operators reported strong results for the third quarter of 2023, citing the launch of adult-use cannabis sales in Maryland and Connecticut.
Adult-use sales began July 1 in Maryland after the state’s voters legalized recreational cannabis in 2022. Connecticut launched adult-use sales Jan. 10 after Gov. Ned Lamont signed it into law in 2021.
Curaleaf reported third-quarter net revenue of $333.2 million, up from $325.8 million in the third quarter of 2022. Adjusted gross profit for the quarter reached $152.2 million, resulting in adjusted gross margin of 46%.
Curaleaf began adult-use sales at four Maryland stores and across wholesale, which it said resulted in triple-digit sequential revenue growth throughout the quarter. The company also opened stores for adult-use sales in Groton and Manchester, Connecticut.
“With significant near-term state and regulatory catalysts on the horizon, coupled with our proposed uplisting to the Toronto Stock Exchange and our early mover advantage in Europe, give us great confidence in Curaleaf's future,” said Curaleaf Executive Chairman Boris Jordan. “I am very encouraged by the team's commitment and discipline, and remain bullish for a strong end to 2023 and an exciting 2024."
Illinois-based Green Thumb Industries (GTI) reported total third-quarter revenue of $275.4 million, up 5.4% from the third quarter of 2022. Gross profit for the quarter reached $133.8 million, representing 48.6% of revenue. That’s compared to $131.2 million or 50.2% of revenue year-over-year.
GTI — which launched adult-use sales at RISE dispensaries in Hagerstown, Joppa, Silver Spring and Bethesda, Maryland — also reported that gross revenue for consumer packaged goods increased 17.8% from the third quarter of 2022.
“Our third quarter performance was largely driven by the July 1 launch of adult-use sales in Maryland,” said Ben Kovler, GTI founder, chairman and CEO. “I want to give a special thanks to all our team members who helped make our first few months of adult-use in Maryland a success.”
Verano reported third-quarter revenue of $240 million, up 5% from $228 million for the third quarter of 2022 and up 3% from $234 million for the second quarter of 2023. Gross profit for the third quarter hit $133 million (55% of revenue), up from $123 million (54% of revenue) for the third quarter of 2022, and up from $115 million (49% of revenue) for the second quarter of 2023.
The company began serving adult-use customers at its four Zen Leaf dispensaries in Maryland and opened two Zen Leaf social equity joint venture dispensaries in Norwich and Newington, Connecticut, bringing its total in the state to four.
“Our strong performance resulted from key drivers that include another seamless adult-use transition in Maryland, the continued expansion of our wholesale business and market-leading positions in Connecticut and New Jersey, successful new product launches and line extensions across our growing brand portfolio, and the addition of new dispensaries to bolster our expanding retail footprint in key states,” said George Archos, Verano founder, chairman and CEO.
Massachusetts-based MariMed Inc. reported third-quarter revenue of $38.8 million, up from $33.9 million in the third quarter of 2022. For the nine months ending Sept. 30, MariMed reported revenue of $109.7 million, up from the $98.2 million the company generated over the same period last year.
The company also reported a third-quarter adjusted EBITDA of $6.1 million, compared to $8.6 million in the third quarter of 2022.
“We reported our 15th consecutive quarter of positive adjusted EBITDA,” MariMed President and CEO Jon Levine said. “Our wholesale business continued to set quarterly sales records, which will continue for the remainder of this year and next. Our balance sheet remains one of the strongest in the industry, and we were particularly pleased with the exponential growth of our Maryland operations with the commencement of adult-use sales on July 1.”
For all of 2023, MariMed projects revenue of $148 million to $150 million; gross margin of approximately 45%; non-GAAP adjusted EBITDA of $27 million to $32 million; and capital expenditures of $22 million to $25 million.
In September, BDSA noted that markets in the Midwest and the Northeast will continue to drive adult-use sales growth. The market research firm forecasts the legal U.S. cannabis market will reach $43 billion in 2027, with an expected compound annual growth rate (CAGR) of nearly 11% between 2022 and 2027. The adult-use channel is expected to represent $35 billion of those sales.