Charlotte’s Web Holdings (CSE: CWEB) posted its first quarter financial figures after market close today, reporting US$21.7mm in revenues for the period ended March 31, 2019. Gross profit was reportedly $15.9mm for the quarter.
The company has also reiterated previous guidance given for fiscal year 2019 revenues, expecting to generate somewhere in the area of US120 million and US$170 million in revenues for the year.
Our sales volumes continue to increase on a quarterly basis and we’re expecting continued top-line growth during the second quarter and during the last half of the year. We reiterate our revenue guidance for 2019 of between $120 million and $170 million.Rich Mohr, Chief Financial Officer of Charlotte’s Web
Charlotte’s Web expects revenues to grow substantially as it continues to build upon its product distribution network. The company reported that more than 6,000 retail locations are now selling its hemp products, 2,300 of which were added in the first quarter of 2019. Locations include four national retailers across 18 US states, one of which is selling all lines of products currently offered by Charlotte’s Web.
Topicals is currently the firms largest area of growth, with revenues increasing 466% in the product segment on a year over year basis. Human nutrition products and animal nutrition products grew by 67% and 79% over the same period respectively.
We are forecasting revenue to grow at a faster pace than operating expenses, particularly in the back half of the year.Rich Mohr, Chief Financial Officer of Charlotte’s Web
The expansion to its distribution network is key for Charlotte’s Web, who posted little quarter over quarter growth in revenues. For the three month period ending December 31, the company posted revenues of US$21.455mm, which shows that the current quarter is relatively unchanged in sales despite the expanded distribution network and greater consumer awareness.
Overall, Charlotte’s Web posted a net profit of US$2.33mm, equating to earnings of $0.03 per share.
Charlotte’s Web closed todays session at $19.93, up $0.60, or 3.10% on the mid day news that it would be delisting from the Canadian Securities Exchange and uplisting to the TSX.
Information for this briefing was found via The CSE and Charlotte’s Web Holdings. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.