Marijuana firm Acreage reports increased revenue, red ink in Q4 and FY 2018

New York-based vertically integrated cannabis group Acreage Holdings reported its fourth-quarter revenue nearly quadrupled last year, while its net loss for the period widened sharply after the company spent heavily in 2018 on acquisitions to expand its footprint.

Acreage reported revenue of $10.5 million for the fourth quarter ended Dec. 31 2018, up from $2.2 million for the same period in 2017. Full-year fiscal 2018 revenue totaled $21.1 million, up 173% from the same period in 2017.

The company’s net loss for the final quarter of 2018 totaled $217.6 million versus $4.7 million a year earlier. Its red ink for the year totaled $219.7 million versus $7.6 million for fiscal 2017.

The company noted it deployed $202 million in capital last year – via cash, stock and debt – “to increase our footprint,” spending $46 million in the fourth quarter alone.

Acreage, which has operating licenses in 19 states, trades on the Canadian Securities Exchange under the ticker ACRG.U. The company also trades on the U.S. over-the-counter markets and the Frankfurt Stock Exchange.

2 comments on “Marijuana firm Acreage reports increased revenue, red ink in Q4 and FY 2018
  1. BoomAndBusted on

    I’m dismayed and disgusted to see that the small farmers largely responsible for the current legal cannabis industry getting crushed by these vertically integrated mega-conglomerates that can use their vast reserves of capital to fund massive operations and produce hundreds of thousands of pounds of product per year, flooding the market and causing prices to plummet. The ensuing market consolidation favors those with extremely deep pockets, who can endure massive operational losses while bankrupting or acquiring small businesses who cannot. Cultivators with hundreds of acres of canopy are able to exercise considerably more influence on policy-makers and regulators, often being appointed to advisory panels or leadership positions within the industry due solely to their massive size. We need a national regulatory body that will prevent these large companies from pursuing these anti-competitive business tactics and restore equal access to the marketplace; without that, companies like Acreage will only grow larger and create an effective oligopoly in much the same way as Google or Amazon. This is not something to celebrate, despite the glowing articles written about these marijuana mega-conglomerates in the media, and I wish there was more coverage about the impact of these corporations on small businesses.

    Reply
    • Michael Alexander on

      You know i understand what you are saying but honestly its still like the gold rush days. There will always be those with more money even a bigger footprint but there is still a chance local growers with a good reputation among their neighbors can capture their own markets. If they satisfy,they will keep their customers. I am all for the small guys but also have a heart for the multi state and international companies that bring me as a shareholder the highest returns.

      Reply

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