TerrAscend Emerging As This Year’s Breakout Star Among Cannabis Operators
by Warren Bobrow
TerrAscend Emerging As This Year’s Breakout Star Among Cannabis Operators
As competition tightens among vertically integrated operators in the cannabis space, one under the radar company has secured its position as one of the leaders of the pack. TerrAscend, one of the fastest growing multi-state operators in North America, reported $34.8 million in net sales, amounting to a 139% year-over year increase, in its first quarter earnings report yesterday.
TerrAscend’s latest performance reinforces analyst projections that this could be a watershed year for the company, which has spent the last year aggressively expanding its U.S. operations. The company reported an adjusted EBITDA of $4.9 million, making this its first adjusted EBITDA-positive quarter, and anticipates its second quarter net sales to reach approximately $45 million.
Under the leadership of the new CEO, Jason Ackerman, TerrAscend’s strategic expansion of its stateside operations, including Ilera Healthcare and The Apothecarium in Pennsylvania, represented more than half of the Company’s first quarter net sales. TerrAscend plans to build off its current growth momentum by opening two new Apothecarium retail locations in Pennsylvania and expanding into New Jersey’s lucrative medical market in the upcoming quarter.
In a company statement, Ackerman reiterated his support for the company’s U.S.-focused expansion strategy saying, “With our Pennsylvania expansion complete and construction of our New Jersey facilities well underway, we’re confident in the ongoing growth targets that we have set. We remain focused on prudently investing our capital in the markets where we see the greatest and most profitable opportunities.”
Despite its significant returns in the U.S. market, TerrAscend is still in the process of consolidating its Canadian operations, which have been stagnant throughout the past quarter. The company will also need to tread carefully through industry-wide headwinds as it expands its retail footprint in one of the most formidable financial climates in the past decade.
News of TerrAscend’s strong financial performance comes on the heels of multiple visible multi-state operators including MedMen, Canopy Growth and Tilray all posting considerable losses in their latest earnings reports. Operators and investors across the industry will have a watchful eye on TerrAscend to see if the company is able to maintain its upward trajectory in this increasingly challenging environment.