Earlier this month, Curaleaf Holdings, Inc. (CSE: CURA) (OTCQX: CURLF) reported financial results for the fourth quarter and the entire fiscal year (which ended on December 31st).
Today, we have published an article on Curaleaf’s earnings report and believe our readers should be aware of the following 5 key takeaways from it:
- Last year, Curaleaf launched 171 new products, introduced three new brands, sold $600 million of its own brands through its stores, completed six acquisitions, opened 28 new stores, and expanded its European presence with the German market
- Curaleaf’s ability to sell so much of its own branded products through its stores is a testament to the strength of its retail business. This advantage could help the company increase gross margins, have an unrivaled geographically diverse footprint, and focus on improving the cannabis customer experience.
- Curaleaf reported record numbers on several metrics in 2022 and generated more than $1.3 billion of revenue during the year. During the fourth quarter, the US cannabis company generated $352.5 million of revenue and $73 million of adjusted EBITDA. When compared to the same period last year, revenue increased by 14% and we are bullish on the improvement
- As of December 31, 2022, Curaleaf reported to have $163 million of cash and $46 million of operating cash flow
- Due to the strength of the balance sheet, Curaleaf plans to continue to invest in what it considers to be strategic opportunities for growth domestically and internationally.
Although we are favorable on the amount of growth that Curaleaf reported for the quarter, we believe the business faces some roadblocks in the near-term. A few months ago, the company exited 3 major cannabis markets (California, Colorado, and Oregon) and we considered this to be a significant development.
If a company said that it was planning to exit a few key US markets back in 2018/2019, we believe the market’s reaction would have been much more pronounced than it was for Curaleaf. We believe the management made the right decision to exit these markets and to focus on states that are more profitable.
During the last year, Curaleaf’s stock has plummeted and we are closely following the trend. During this time, the company recorded a more than $350 million net loss and we will monitor how this changes over the next year.
If you are interested in learning more about Curaleaf’s earnings report from cannabis companies, please send an email to email@example.com with the subject “Curaleaf’s Earnings Report” to be added to our distribution list.
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