Charlotte's Web Q4 Revenue Up 5% QoQ, Adjusted EBITDA Loss Improves By $5M

Loading...
Loading...

Charlotte's Web Holdings, Inc.CWEB CWBHF reported financial results for the fourth quarter and year ended December 31, 2021.

"At the beginning of 2022 we took organizational actions, better aligned leadership and employees with shareholder interests, and simplified our business for focus, speed, and executional excellence. Our organization is fully engaged and we intend to grow our business," Jacques Tortoroli, CEO of Charlotte's Web, said. "We have substantially completed our multi-year investment in our production capacity to effectively service a sophisticated mass retail channel when federal regulations are set for the CBD wellness category in the U.S.”

Q4 Financial Highlights

  • Consolidated net revenue was $24.8 million, an increase of 4.7% sequentially, and a decrease of 7.8% year-over-year, due to sales and channel mixes and competitive DTC pricing.
  • DTC net revenue was 12.1% lower year-over-year due to product mix and lower-than-expected online sales during the December holiday season.
  • B2B revenue growth was flat year-over-year at $9.5 million on higher unit sales volume of new pet, topicals, and gummy products which carry lower average unit pricing.
  • Gross profit of $4.2 million, or 16.9% of consolidated revenue, was negatively impacted by non-cash inventory provisions of $9.6 million for the quarter.
  • Total SG&A expenses increased 4.7% to $24.4 million year-over-year from $23.3 million.
  • Net loss was $118.2 million for the fourth quarter as compared to net loss and comprehensive loss of $12.2 million in the fourth quarter of 2020.
  • Adjusted EBITDA loss for the fourth quarter was $4.5 million, or 18.1% of net revenue, as compared to Adjusted EBITDA loss of $3.1 million, or 11.5% of consolidated revenue, for the fourth quarter of 2020.

2021 Financial Highlights & Business Milestones

  • Net revenue grew 1.0%, to $96.1 million. 
  • Direct-to-consumer e-commerce revenue decreased 2.3% year-over-year to $62.3 million while business-to-business revenue grew 7.5%, to $33.8 million.
  • Gross profit was $48.6 million, or 50.6% of consolidated revenue, with gross profit excluding inventory provisions of $58.3 million, or 60.7% of consolidated revenue.
  • Net loss was $137.7 million including $107.7 million of non-cash impairments in goodwill, customer relationships, trade names, inventory provisions, and other long-lived assets, compared to a net loss of $30.7 million in 2020.
  • Adjusted EBITDA improved by $5 million versus 2020, resulting in a smaller adjusted EBITDA loss of $18.6 million. 
  • Total cash use was $33.3 million of which approximately $22 million was non-recurring payments including an $8 million strategic purchase option for Stanley Brothers USA Holdings, Inc.'s cannabis business.
  • Cash and working capital at December 31, 2021 were $19.5 million and $75.6 million, respectively, compared to $52.8 million and $114.9 million at December 31, 2020.
  • Achieved USDA organic certification on select products and secured three new U.S. Patents for proprietary hemp cultivars, bringing its total to five.
  • Completed the first international harvest of Charlotte's Web's proprietary patented hemp cultivars, with product planned for late 2022 availability

Photo: Courtesy of Markus Winkler on Unsplash

Loading...
Loading...
Market News and Data brought to you by Benzinga APIs
Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: CannabisEarningsNewsPenny StocksMarketsfinancial resultsFourth Quarter EarningsJacques Tortorolimarijuana
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

The Benzinga Cannabis Capital Conference is coming to Florida

The Benzinga Cannabis Capital Conference is returning to Florida, in a new venue in Hollywood, on April 16 and 17, 2024. The two-day event at The Diplomat Beach Resort will be a chance for entrepreneurs, both large and small, to network, learn and grow. Renowned for its trendsetting abilities and influence on the future of cannabis, mark your calendars – this conference is the go-to event of the year for the cannabis world.

Get your tickets now on bzcannabis.com – Prices will increase very soon!


Loading...