Curaleaf Q1 2023 Financials: Higher Revenue, Lower Margins, Wider Losses
Curaleaf Holdings (CSE: CURA) reported its Q1 2023 financials late last night, just days after publishing the results of the previous quarter. The cannabis firm posted $336.5 million in revenues, a sequential decline from Q4 2022’s $344.9 million but a 14% jump from Q1 2022’s $296.1 million.
The company said its year-over-year revenue growth is primarily driven by new retail store openings and a significant focus on research and development, which has resulted in the introduction of 171 products in 2022, three new brand launches, and contributions from Tryke and Four 20 Pharma.
“2023 is off to a strong start for Curaleaf, with first quarter year-over-year revenue growing 14% to $336.5 million, beating our guidance of low double-digit growth,” said Executive Chairman Boris Jordan. “Adjusted gross margin was 48% and adjusted EBITDA margin was 22%.”
Gross margin for the quarter came in at 47.8%, down from last year’s 54.5%, mainly due to higher sales costs. Operating margin also dwindled down to 4.9% from 8.9% in the year-ago period.
Net loss for the quarter ended at $56.5 million, $10.1 million of which came from discontinued operations. This is a wider loss from last year’s $38.3 million net loss, when $4.3 million coming from discontinued operations.
The bottomline figure translates to a $0.07 loss per share.
Calibrating for financial items, adjusted EBITDA came in at $73.2 million for the quarter, down from both last quarter’s $76.9 million and last year’s $76.1 million.
The firm generated operating cash of $14.2 million, leading to end with a cash balance of $115.8 million, down from its balance of $163.2 million at the end of the last quarter. Total current assets came in at $599.4 million while total current liabilities came in at $544.7 million.
Curaleaf announced a single-day sales record on April 20, an unofficial holiday for marijuana users, propelled by sales in New Jersey, which increased 77% year over year.
Curaleaf last traded at $3.70 on the CSE, up 7.6% on the day. The stock is down more than 32% year to date.
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