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The Public Cannabis Company Revenue & Income Tracker, managed by New Cannabis Ventures, ranks the top revenue producing cannabis companies. This update is our first since late April, when we previewed the upcoming Q1 reports..
Tracker Rules
This data-driven, fact-based tracker will continually update based on new financial filings so that readers can stay up to date. Companies must file with the SEC or SEDAR and be current to be considered for inclusion. When we launched this resource in May 2019, companies with quarterly revenue in excess of US$2.5 million qualified. As the industry has scaled and as more companies have gone public, we have raised the minimum several times subsequently, including a move to US$5 million in October 2019, to US$7.5 million in June 2020, to US$10 million in November 2020 and US$12.5 million in August 2021. Due to the rapid growth in the cannabis industry, we raised the minimum to US$25 million (C$33.8million) to qualify for what we now call the senior list and introduced a junior list with a minimum of US$12.5 million (C$16.9 million) in September 2021. It’s been a while since we have adjusted the rules for inclusion, but we did so again last week. Going forward, the senior list has a minimum of US$50 million (C$68.1 million), and the junior list now has a minimum of US$25 million (C$34.1 million).
A Note About Adjusted Operating Income
In May 2019, we added an additional metric, “Adjusted Operating Income”, as we detailed in our newsletter. The calculation takes the reported operating income and adjusts it for any changes in the fair value of biological assets required under IFRS accounting. We believe that this adjustment improves comparability for the companies across IFRS and GAAP accounting. We note that often operating income can include one-time items like stock compensation, inventory write-downs or public listing expenses, and we recommend that readers understand how these non-cash items can impact quarterly financials. Many companies are moving from IFRS to U.S. GAAP accounting, which will reduce our need to make adjustments. Please note that our rankings include only actual reported revenue and not pro forma revenue. We also note that companies with non-cannabis operations must provide segment-level financial reports that detail not only revenue but also operating profit to be have their operating profit included in the tracker. Currently, Aurora Cannabis (NASDAQ: ACB) (TSX: ACB), Jazz Pharma (NASDAQ: JAZZ) and Tilray (TSX: TLRY) (NASDAQ: TLRY) aren’t providing this information.
Tracker Inclusion Updates
At the time of our last update on April 27th, 34 companies qualified for inclusion on the senior list, including 28 filing in U.S. dollars and 6 in the Canadian currency. Due to the changing of the qualification levels, 16 companies that file in U.S. dollars qualify and 3 that file in Canadian dollars are qualifying for the senior lists, a total now of 19. The junior list now includes 13 companies reporting in U.S. dollars and 3 in Canadian dollars. On a combined basis, the Public Cannabis Company Revenue & Income Tracker now includes 35 companies. We removed several companies that were previously on the junior lists.
Included Companies That Reported in May
This was a busy reporting period, as most of the companies on the senior list have years ending in December and were required to file by mid-May.
Senior and Junior – American Dollar Reporting
Nine companies reported revenue in excess of $100 million, including eight MSOs. The four highest MSO revenues were all in excess of $200 million and showed on average slightly negative sequential growth as annual revenue increased only 3.5%. Curaleaf (OTC: CURLF) (TSX: CURA) had the highest revenue, but is annual growth was only 2%. Operating income was just $12.7 million. Trulieve (OTC: TCNNF) (CSE: TRUL) saw the strongest sequential growth at 4%. Green Thumb Industries (OTC: GTBIF) (CSE: GTII) had the strongest annual growth and the highest operating income. Verano Holdings (OTC: VRNOF) (NEO: VRNO) had the worst sequential growth, falling 7%, and it was the only one of the four to see sales shrink from a year earlier.
There are no companies that are on the senior list that are scheduled to report. Tilray Brands (NASDAQ: TLRY) (TSX: TLRY) ends its Q4 in two weeks and will report it by the end of August, perhaps earlier. Analysts expect total revenue for the company will be up 22% to $225 million due to the alcohol M&A that the company has done. They expect total adjusted EBITDA to rise 27% to $28 million. We are aware that some of the companies are late, and they are subject to removal if they don’t file soon.
Senior and Junior – Canadian Dollar Reporting
The only senior company to recently report was SNDL (NASDAQ: SNDL), which experienced a 9% sequential decline in cannabis-related revenue to C$91.9 million. This was up 7% over the past year.
Canopy Growth (NASDAQ: CGC) (TSX: WEED) has scheduled its Q4 call for the end of the month. Analysts expect that revenue fell 2% to C$72 million as adjusted EBITDA improved to -C$15 million.
Stay up to date
Visit the Public Cannabis Company Revenue Tracker to track and explore the complete list of qualifying companies. Readers can access our library of Revenue Tracker articles. For our readers who are interested in staying on top of scheduled earnings calls in the sector, we have created and continually update the Cannabis Investor Earnings Conference Call Calendar.
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