Ayr Wellness Inc. (OTCMKTS: AYRWF) has reported its financial results for the quarter and nine months ending September 30, 2021.
Ayr Wellness reported revenue of $86.2 million in Q3 2021
The company reported revenue of $86.2 million in the quarter, representing a YoY increase of 111% and a 5% increase sequentially. Adjusted EBITDA in Q3 2021 was up 40% YoY to $26 million but dropped 5% sequentially as Ayr invests in future growth.
The company’s CEO Jonathan Sandelman said, “We are pleased to report another great quarter of growth at Ayr, more than doubling our revenue from last year’s third quarter and up 5% sequentially in a flat cannabis market. We have been able to maintain or grow share in competitive markets with pricing discipline because, by design, we have focused on quality and consumers continue to show a willingness to pay for quality. As we’ve said again and again, we seek to be the largest scale cultivator of high-quality cannabis in the United States. First and foremost, this is because we want to produce the best product for our customers. But also, because quality serves as a mitigant to pricing pressure that can result from supply and demand imbalances. Quality matters.”
Ayr Wellness expecting Q4 2021 sales to grow 10% sequentially
Based on current performance, management expects sales to increase by more than 10% sequentially in Q4 2021. As the company invests in branding, growth projects and new markets, and centralized corporate resources supporting growth, adjusted EBITDA is expected to stay essentially unchanged sequentially.
Sandleman commented, “We are unveiling our new corporate, retail and CPG brands which represent the next phase in the evolution of our company. These brands are designed to represent the quality of what’s inside the box.”
Due to capital projects delays and the impact on earnings, if recent wholesale market pricing volatility continues into 2022, the company is lowering its 2022 Adjusted EBITDA outlook to a range of $250 million to 300 million. In addition, it’s restating its $800 million revenue target for 2022.