Charlotte's Web Reports Q3-2021 Increased Sales Volumes, Improved Profit And Operating Margins

Denver-based, Charlotte's Web Holdings Inc. CWEB CWBHF, a leading firm in full-spectrum hemp extract wellness products, reported financial results on Monday for the third quarter ended September 30, 2021.

Third Quart-2021 Financial Highlights Vs. The Same Period in 2020

• Net Revenue during the third quart of 2021 was $23.7 million vs. $25.2 million in the same period of 2020, with increased unit sales offset by product and channel mix.
• Gummy sales contributed 30% in the third quarter of 2021 vs. 23% in the same quarter of 2020. Tincture sales contributed 37% in 2021, vs. 49% in the third quarter of 2020.
• DTC eCommerce revenue was $15.2 million vs. $16.7 million in the same time period of 2020, with increased customers and unit sales.
• B2B revenue increased to $8.5 million in 2021 from $8.4 million in 2020, due to increased unit sales and new distribution.
• Gross profit increased to $14.9 million, expanding to 62.9% of consolidated revenue vs. 58.7% in the same period of 2020.
• Operating expenses decreased 15.6% year-over-year, ahead of plan.
• Adjusted EBITDA of $2.8 million, improved year-over-year (from $6.7 million in 2020) and sequentially ($3.9 million in the second quarter).
• The company had $21.1 million in cash (excluding $10.9 million IRS tax refund) and $87.5 million in working capital on September 30, 2021.
• $10 million unused lines of credit with JPMorgan with the potential to extend to $20M.

Business Highlights

• Expanded #1 market share position across every channel;
• Increased pet product retail distribution by 222 doors;
• Launched 3 new gummy product lines: Daily Wellness, THC-Free and Immunity;
• Obtained USDA organic certification on select products;
• Entered multi-phase research on hemp extracts with Colorado State University;
• Operationalized new 137,000 sq. ft. production and distribution facility; and,
• Advanced extraction and R&D capabilities.

Price Action

Charlotte's Web stock traded 7.28% lower at $1.91 per share at the time of writing Monday evening.