High-profile North American cannabis industry operator TerrAscend last week released its financial results for the fourth quarter and full-year periods ending December 31, 2021. The numbers appear to be quite positive and as the industry continues to grow, this company is looking to keep pace.
When it comes to the financial highlights for the fourth quarter of 2021, net sales were a minuscule increase over the previous quarter. Last year’s third-quarter reported a total of $49.1 million in net sales, while the final quarter of 2021 saw an increase of just $100,000 extra. This represents a slight decrease over the same period in 2020 when sales totaled $49.6 million.
The gross profit margin was 42.3% compared to 43.8% in the third quarter of 2021 and 55.8% in the fourth quarter two years ago. The adjusted gross profit margin was 49.8% compared to 46.2% in the third quarter of 2021 and 60.5% in the fourth quarter of 2020.
Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was $11.9 million compared to $9.0 million in the third quarter and $19.3 million in the last quarter of 2020. Adjusted EBITDA excluding lease expenses was approximately $12.8 million compared to $10.5 million in the third quarter of 2021.
On a full-year basis, the company reported sales of $210.4 million, an increase of 42% year over year. The gross profit margin was 53.3% compared to 54.8% in 2020. Adjusted EBITDA was $65.6 million compared to $41.7 million in 2020, representing a 57% increase year over year. Adjusted EBITDA under IFRS, excluding lease expenses, was $70.1 million, which is a big jump from $45.5 million two years ago.
“The strategic decisions we made in Pennsylvania have resulted in the highest quality product we have ever sold in this market,” said Jason Wild, Executive Chairman of TerrAscend. “I’m proud of the hard work by the team in 2021, which has positioned us well for the explosive growth we expect in 2022 and beyond.”