Adam Jackson
Curaleaf Holdings Inc. (CSE: CURA) (OTCQX: CURLF) reported a year-over-year rise in net revenue for the first quarter ended March 31, but a sequential decrease from the previous quarter.
The New York-based company recorded net revenue of $336.5 million for the first quarter of 2023, up $40.5 million from the first quarter of 2022. The primary driver of the rise was continued organic growth driven by new retail store openings and a significant focus on research and development.
This beat revenue expectations by nearly $5 million and exceeded the forecasted low-double-digit growth.
Despite the strong revenue figures, Curaleaf reported a net loss attributable to the company, including discontinued operations, of $54.4 million, or a net loss per share of $0.07. The company’s adjusted EBITDA was $73.2 million, or 22% of revenue.
CEO Matt Darin emphasized the company’s commitment to profitable, responsible growth, and operating efficiency. “We are laser-focused on operating efficiencies in every aspect of our business, both in the U.S. and Europe,” he said.
Darin further added that since he stepped into the CEO role a year ago, the company has been decisive in maximizing opportunities in high-growth markets while scaling back from unprofitable markets. The focus has been on establishing a lean asset base from which the company will drive margin improvements, operating leverage, and cash generation.
Revised Full-Year Outlook
Curaleaf anticipates a robust growth trajectory for 2024, 2025, and 2026, as cannabis adoption accelerates across Europe. The company also has a strong cash position, ending the quarter with $116 million on its balance sheet, and generated $31 million in operating cash flow from continuing operations.
Despite the net loss, the company exceeded its expense reduction plan by $20 million, realized annual gross run rate savings of $60 million, and added three dispensaries in Florida, bringing the total to 58 in the state.
The company also highlighted record-breaking sales on 4/20, led by a 77% increase over 2022 in New Jersey, and the introduction of a new cannabis edibles brand, JAMS, in Arizona and Florida.
Beyond the first quarter, Curaleaf expanded its retail operations to 152 nationwide as of Wednesday. The company is focusing on product innovation and development, strengthening its brand portfolio, and delivering a superior retail experience.
It has positioned itself for future growth by making strategic international investments, particularly in the growing European market.
