Debra Borchardt
Curaleaf Holdings, Inc. (CSE: CURA) (OTCQX: CURLF) reported its financial and operating results for the second quarter ended June 30, 2021. Curaleaf revenue reached $312 million, increasing 20% sequentially and 166% YoY. The company’s net losses were trimmed from $17.2 million in the first quarter to just $7.2 million in the second quarter.
“July saw the introduction of the most comprehensive cannabis reform ever proposed at the Federal level,” said Boris Jordan, Executive Chairman. “Combined with U.S. state-level liberalization and the significant investments we are making in cultivation, production and distribution, Curaleaf is creating a strong foundation for future growth. Nearer-term this includes the expansion of New York, New Jersey and Connecticut from medical to adult-use markets representing a potential new $8 billion annual addressable market opportunity. Longer-term, our acquisition of EMMAC and establishment of Curaleaf International this quarter marks our entry into Greater Europe, with a population of 750 million representing a potential market size twice that of the United States.”
Curaleaf’s adjusted EBITDA was $84 million for the second quarter of 2021 versus last year’s $28 million for the second quarter. The company said the year-over-year increase was primarily driven by strong revenue growth and increased operating leverage. Adjusted EBITDA margin expanded 320 basis points year-over-year to reach 27.0%. Excluding Curaleaf International, the margin expanded 400 basis points sequentially and 423 basis points year-over-year to 28.1%. As of June 30, 2021, Curaleaf had $334 million of cash and $338 million of outstanding debt net of unamortized debt discounts.
It’s worth noting that the lowered net losses were impacted by higher stock-based compensation and one-time charges related to the acquisition of EMMAC (now Curaleaf International) as well as earnings dilution from the consolidation of EMMAC, which contributed to a net loss of approximately $8 million. For the six months ending in June, the net losses are $26 million versus 2020’s net losses of $17.2 million.
CEO Joe Bayern added, “Curaleaf continues to make excellent progress in terms of executing our U.S. strategy to achieve unrivaled scale and reach, and our record second-quarter results reflect this. Our leading positions in cultivation and distribution are driving some of the strongest revenue growth rates in the sector, while our scale and focus on cost efficiency are delivering Adjusted EBITDA margin expansion as promised. Looking ahead, our strategic investments in innovation and technology will deliver processing advantages and consumer-focused product differentiation to fuel our growth into 2022 and the years beyond.”
Following the end of the quarter, Curaleaf opened a medical dispensary in Wells, Maine, bringing total retail dispensaries to 108 as of today. The company also launched B. Noble pre-roll brand partnership in Maryland and Massachusetts.
