Cresco Labs (OTC: CRLBF) specializes in cannabis wholesale, which (for now) means that it's aiming to be a high-margin and high-growth business at the same time. So far, it looks like the plan is working.
With its network of 33 stores, Cresco sold $476 million worth of its marijuana products in 2020. By the end of 2021, management expects the company to be making around $1 billion annually. To get there, Cresco will deepen its penetration in a slew of its state-level markets, like Ohio, Massachusetts, and New York. As an example, in Ohio it purchased four dispensaries in the first quarter of 2021, adding considerably to its prior grand total of one location.
But, don't assume that Cresco is slamming down several new dispensaries at the expense of straying further from reaching profitability. In Q1 of this year, it reported adjusted earnings before interest, taxes, depreciation, and amortization (adjusted EBITDA) of $35 million, which is quite impressive when you consider that it works out to be an increase of more than 507% relative to the same quarter of 2020. Considering that AMC has recently been reporting losses rather than earnings, it's easy to see how Cresco will be a better stock to own for the foreseeable future.