Charlotte's Web Holdings, Inc. CWEB CWBHF reported its third-quarter results on Thursday for the three months ended Sept. 2023, revealing a nearly 16% year-over-year decrease in revenue to $14.3 million.
The sum included $9.4 million in direct-to-consumer net revenue and business-to-business retail net revenue of $4.9 million, both down from $11.8 million and $5.2 million, respectively, from the prior year’s period.
The Colorado-based company said CBD product sales year-to-date remain below expectations due to “ongoing headwinds in the overall CBD category, including regulatory ambiguities at the federal and state levels, associated customer and consumer confusion, and competitive crowding and pricing pressures.”
Charlotte’s Web recently joined a historic alliance of top CBD companies advocating for legislation and FDA regulation of hemp-derived CBD products as dietary supplements - ONE HEMP. Besides Charlotte’s Web, the alliance includes some of the biggest names in the space like BayMedica, Brands, FSOil, Hemp Beverage Alliance, Kazmira, MAD TASTY, Open Book Extracts and Wyld.
In September, the company tapped William Morachnick to serve as its new chief executive officer, succeeding CEO Jacques Tortoroli, who resigned.
Q3 2023 Financial Highlights
- Gross profit was $7.9 million, or 55.5% of revenue, as compared to gross profit of $8.9 million, or 52.5% of revenue, in the third quarter of 2022.
- Net loss totaled $15.2 million, up from $7.6 million in the same quarter of 2022.
- Selling, general and administrative expenses amounted to $19.9 million, up from $11 million in the prior year’s period.
- Operating loss was $12 million, up from a $3.9 million loss in the corresponding period of 2022.
- Adjusted EBITDA came in negative at $6.4 million, compared to an adjusted EBITDA loss of $1.2 million in the prior year’s period.
- As of Sept. 30, 2023, the company had CA$163.9 million in total assets, compared to $187.6 million on Dec. 31, 2022.
- Total liabilities amounted to $100.1 million as of Sept. 30, 2023, down from $110.1 million on Dec. 31, 2022.
See also: Charlotte's Web Q2 Revenue Declines 15.2% YoY, What About Income?
CWBHF Price Action
Charlotte's Web’s shares traded 1.7179% lower at $0.2637 per share at the market close on Wednesday afternoon.
Experts believe cannabis stocks have found their floor and are now poised for unprecedented growth.
Join Benzinga PotProfits. Our in-house canna stock expert, Michael Berger, is on a mission to uncover the most promising cannabis stocks poised for growth, even in a dull market. He leaves no bud unturned to bring you the juiciest potential double-digit opportunities!
Just this year, the PotProfits portfolio has seen smoking-hot gains like:
- 47.10% with $GTBIF
- 40.23% with $TCNNF
- 21.50% with $VFF
Photo: Courtesy of Towfiqu barbhuiya on Unsplash
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Date | ticker | name | Actual EPS | EPS Surprise | Actual Rev | Rev Surprise |
|---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
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!