Curaleaf Holdings Inc. Reports Q2 2023

NEW YORK — Curaleaf Holdings Inc., a global provider of consumer cannabis products, has released its Q2 2023 financial results. The company has reported a 4% year-over-year revenue growth, totaling $339 million, amidst a dynamic market landscape.

Key Financial Insights from the Report:

• Year-over-year net revenue for Q2 2023 reached $338.6 million, up by 4% from the previous year’s $327 million.
• Adjusted gross margin settled at 44% with an adjusted EBITDA of 21%.
• A net loss attributable to Curaleaf Holdings Inc. was recorded at $71.2 million or $0.10 per share.
• The company’s cash position stands strong, with a reported $85 million by the end of the quarter.

Boris Jordan, Executive Chairman of Curaleaf, expressed confidence in the company’s financial standing, emphasizing its long-term growth strategy. “As the U.S. industry approaches a balance between supply and demand, our focus remains on future expansion, notably in Europe, and our leverage in Germany,” Jordan said. He added, “Our commitment to global positioning will be pivotal for our projected growth and improved margins through 2026.”

Matt Darin, Curaleaf’s CEO, highlighted the company’s prudent management practices, saying, “By reducing our expenses by 7% in Q2, we not only optimized our retail mix but also managed our inventory efficiently. This approach ensures that Curaleaf remains poised to tap into the global cannabis market opportunities as they emerge.”

Operational Highlights Include:

• Expansion of its retail footprint in Florida, with a total of 60 stores in the state.
• The launch of a new Curaleaf mobile app and the introduction of the Grassroots brand in Florida.
• A noteworthy sale of Colorado cultivation assets and an acquisition of Deseret Wellness in Utah.
• Successful adult-use sales launches in Maryland across its stores and wholesale channels.

Post Q2 2023, Curaleaf achieved significant milestones, such as opening an additional store for adult-use sales in Connecticut and launching the Briq vape in six major markets, which saw record-breaking sales of $2 million within the first month.

In terms of revenue breakdown, retail revenue accounted for 82% of total revenue, a 10% year-over-year growth, supported by product diversification and new store openings. Wholesale revenue, on the other hand, experienced a decrease, mainly due to price compression and a deliberate reduction in low-profit raw material sales.

Looking at the first half of 2023, the company saw an 8% year-over-year increase in net revenue, reaching $675.1 million. Retail revenue for this period was recorded at $550 million, while wholesale revenue saw a decline of 16% from the previous year.

The financial statement also drew attention to the company’s net loss for the first half of 2023 at $126 million, a decline attributed to a reduced gross margin rate and increased total other expenses.

As of June 30, 2023, Curaleaf’s balance sheet reported $85 million in cash, with an outstanding net debt of $574.1 million after accounting for unamortized debt discounts. The company’s investment focus remains on strategic market expansion, with a net capital expenditure of $34.9 million.

With these results, Curaleaf continues to underline its commitment to playing a significant role in the evolving global cannabis industry, emphasizing its attention to growth, innovation, and operational efficiency.