Charlotte's Web Q1 Revenue Increases 9.1%. YoY To $23.4M: What Cannabis Stock Investors Need To Know
Hemp CBD extract producer Charlotte's Web Holdings, Inc. (TSX:CWEB) (OTCQX:CWBHF) generated $23.4 million in consolidated revenue in the first quarter of 2021, representing a year-over-year increase of 9.1%.
DTC eCommerce sales rose 14.5% over the same period, accounting for 68.9% of revenue.
The company's business-to-business (B2B) net revenue drooped 1.4% year-over-year. Comparable B2B retail sales, excluding non-retail B2B hemp drying services, grew 11%, expanding market share.
"Our B2B retail sales and velocities further strengthened in March and April as US vaccination programs support reopening of the economy, and our DTC sales continued to grow, demonstrating long-term secular strength for our products in the e-commerce channel," said Deanie Elsner, CEO of the Boulder, Colorado-based company.
Here's a breakdown of what the first-quarter earnings report showed:
- Gross profit amounted to $13.7 million, versus $15.1 million in the same period of the prior year.
- Operating expenses increased by 2.9% year-over-year and declined by 15.2% over the last six months.
- Adjusted EBITDA loss of $4.7 million compared to a $5.7 million loss in the corresponding quarter of 2020.
- As of March 31, the company had $35 million in cash and $95.6 million in working capital.
Over the quarter, the company introduced its first THC-free broad-spectrum extract tinctures and topical and also continued to boost its market position with quarterly market share gains across all channels.
Last year, Charlotte's Web entered the Israeli market by teaming up with InterCure Ltd. (TASE: INCR).
"We are pleased with our progress and believe that Charlotte's Web is well-positioned to drive continued growth in the US and new growth in key international markets as we expand outside of the US," Elsner said.
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