One of the leading cannabis operators in the North American region has just released its latest financial report for the first quarter that ended on March 31, 2020. TerrAscend is presenting an attractive financial report in which net sales rose 34% compared to the previous quarter. Another great achievement highlighted in the report is that the company reached a positive adjusted EBITDA, which takes the company to the side of profitability.
The main highlights of the report include quarter net sales for a total of $25.2 million, which also means a 139% increased if compared to the same quarter of year 2019. The gross margin is also showing an increase to 45% from the 10% it reported the same first quarter of 2019. The adjusted EBITDA was reported $3.55 million when it was negative $3.98 million last year. “Getting to adjusted EBITDA profitability is a transformational milestone for our Company, and I’d like to thank the team for their tireless efforts towards that goal,” said Jason Ackerman, Executive Chairman and CEO of TerrAscend.
Another important observation is the growth the company is enjoying in the US market, which is currently seeing more success than the Canadian cannabis market that continues to struggle with regulations. TerrAscend’s US operations generated 57% of the gross margin and 25% of Adjusted EBITDA. Another great result is the increment of the cash and cash equivalents available to the company; last year, it was reported at $6.23 million, and this year, the total cash reserve was reported at $22.74 million. According to Ackerman, “These results were driven by the strong performance of our U.S. operations, which continue to perform ahead of plan.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.”