Curaleaf's Revenue Growth Nearly Quadrupled In Q3
U.S.-based Curaleaf Holdings Inc (OTC:LDVTF) reported its financial results for the third quarter. The company, which went public on the Canadian Stock Exchange at the end of October, reported a significant growth in top line and provided a positive outlook for the full year.
During the third quarter, Curaleaf saw its revenue surge by 289 percent on a year-on-year basis to $21.4 million. The company's bottom line swung to a net loss of $33.7 million from a net profit of $500,000 a year earlier. The net loss was impacted by a $25 million one-time, non-cash, accounting entry, which was part of the company's reverse takeover.
Curaleaf's gross profit, excluding the impact of biological assets, amounted to $13.8 million, an increase of 360 percent on the year.
Why It's Important
Curaleaf is one of the largest vertically-integrated cannabis companies in the US. Headquartered in Massachusetts, the company operates in 12 states, where it has 33 dispensaries, 12 cultivation sites and 10 processing facilities.
The company raised $400 million in a private placement last month and debuted on the stock market with a capitalization of $4.5 billion, one of the largest among cannabis stocks that went public on CSE.
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Curaleaf plans to have over 40 locations by the end of this year and at least 67 locations by the end of 2019. It also plans to complete two acquisitions in Maryland and Massachusetts by the end of this year.
Curaleaf also provided its outlook for the full fiscal 2019. The company expects revenue of $400 million enterprise-wide and a free cash flow of $100 million.
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