The Parent Co reported Q1 2021 earnings, and here’s what you need to know.
We had expected the company to reset their aggressive guidance to the downside while using organic integration and M&A to prove the incremental margin opportunity of their “house of brands” strategy.
While we were correct on the resetting of guidance, both the reset and the incremental margins were worse than expected. Fortunately, the company posted sequential revenues that implied a modest increase in market share, and they were able to ink an investment with Mercer Park / Glass House Group (BRND) to secure an equity stake and an offtake agreement.
Premium Members can read our updated valuation and analysis of the results below: