New York-headquartered cannabis cultivation, processing, and dispensing company Acreage Revenue witnessed a dramatic increase in revenue in the first quarter of 2020.
Acreage Holdings reported a $24.2 million revenue, a 15 percent increase compared to the fourth quarter of 2019. According to the company, this year’s profit jumped by 88 percent, compared to the data from 2019 first quarter.
The pro forma revenue was reported $37.6 million, a 17 percent increase from 2019’s fourth quarter. Acreage’s profit increase can be traced from its strategy to refocus operations in certain states. Some states are doing better compared to others, which Acreage Holdings noticed, especially during a health crisis.
According to chief executive officer Bill Van Faasen, the company ‘quickly adapted’ to the changing dynamics brought by the pandemic, servicing patients and customers in need. Acreage’s dispensary and cultivation associates are able to ensure that customers are ‘served with dignity and respect.’
Wholesale Business Ramps Up
The company’s wholesale business shows reacceleration brought by the maturity of dispensaries. Faasen said Acreage was able to build 10 to 15 new dispensaries to scale up operations quickly. Instead of focusing on wholesale business alone, the company diversified its offerings to cater to the needs of consumers.
Despite quarantine and social distancing protocols, all company facilities ensured proper operational standards, especially in dispensaries and cultivation facilities. Faasen said Acreage was able to step up without question, adapted online ordering to prevent people from coming into dispensaries to buy their cannabis supply.
Curbside pickup and at-home delivery were put to place in a span of days and made available all throughout the entire network of marijuana dispensaries.
“On our last earnings call, we recapped the most challenging year the cannabis industry has ever faced that is until 2020, which challenged the entire planet with one of the worst pandemics in recent history, which took an enormous toll on the entire world in terms of loss of life and economic turmoil,” said Faasen.
By creating new guidelines and improving customer service, the company was able to respond quickly and provide quality service to customers in the United States. This move helped the business become available when a medical marijuana patient needs a supply of cannabis to get quality life.
The report also made it clear that Acreage Holdings became the largest cannabis business in the country with 15 operational dispensaries. In addition to this, the company is also improving its consulting services agreements, management, and acquisitions.
The consumer-focused experience model provided benefits for Acreage Holdings’ as customer’s journey isn’t linear and more cannabis dispensaries are available in the United States. By providing a hassle-free online ordering platform and e-commerce features, such as online delivery, customers can easily buy what they need from the Acreage’s consumer brands.
Acreage Holdings builds and scales operations for U.S. consumers. It is a multi-state operator of cannabis licenses and assets, with award-winning national retail store brand The Botanist.