Curaleaf Reports Second Quarter 2022 Results, Chairman Boris Jordan Says Fundamentals Are Strong

Recently, Curaleaf Holdings, Inc. CURA CURLF reported its financial and operating results for the second quarter, ended June 30, 2022.

"Our record-breaking second quarter got off to a great start with the launch of adult use in New Jersey and a historic 4/20," said Boris Jordan, executive chairman of Curaleaf. "We bounced back from earlier headwinds to grow revenue 8%, and AEBITDA 18% sequentially while continuing to execute on our growth strategy for Europe, a key differentiator for Curaleaf and a significant advantage over our competitors.”

In addition, Jordan reported that thanks to Curaleaf's vertical penetration and operating efficiencies, adjusted EBITDA margins expanded to 26%. "The fundamentals of our business are strong, and our leadership team is moving with speed and discipline, continuing to set up 2022 as another milestone year," Jordan added.

Matt Darin, CEO of Curaleaf, stated that in the second quarter they made key adjustments and some bold decisions to focus on operational excellence, innovative products and brands, and leadership talent, and they are already seeing positive results as demonstrated by a "267 bps improvement in gross margin on cannabis sales.

"This quarter we continued to grow our retail footprint, expand our distribution partnerships, and launch innovative new product lines that excite consumers and invigorate the industry," Darin added. "The power of our platform, our products, and our people is undeniable, and we are now realizing the impact of our long-term strategy both in the U.S. and abroad."

“I am more confident than ever that Curaleaf will continue to be the global leader in the cannabis industry," Darin concluded.

Second Quarter Operating Highlights

• Added seven new retail dispensaries, closing the quarter with 135 total locations, and serviced nearly 2,200 wholesale partner accounts.
• Commenced adult-use sales in New Jersey, with BDSA estimating a $2.3 billion market by 2026.
• Executed historic 4/20 with net revenue increasing 45% year-over-year.
• Launched Endless Coast Cannabis-Infused Seltzers, a highly sociable line of low-calorie, low-sugar, and low-carb beverages.
• Signed a distribution agreement with WB Canna Co. & Wellness which will launch Curaleaf's Hemp and Select CBD product lines in the U.S. Virgin Islands, Puerto Rico, Aruba, Bermuda, Barbados, Cayman, Costa Rica, Guatemala, Jamaica, and Saint Maarten, as well as additional markets in Latin America.
• Tyneeha Rivers joined as the Company's first chief people officer in June and made an immediate impact on organizational dynamics and leadership culture.

Post Second Quarter Operating Highlights

• Opened Tampa Citrus Park dispensary, our 51st in Florida and 136th overall.
• Launched "The Farmer's Select" program, an ongoing series of limited-edition collaborations with licensed legacy farmers and diverse operators in California.
• Launched Plant Precision, a health and wellness line of products featuring minor cannabinoids in combination with lower levels of THC to address a variety of need states for new consumer segments.
• Announced key hires in Ed Kremer as Chief Financial Officer, Camilo Lyon as Chief Investment Officer, and Mitch Hara as Chief Strategy Officer.

Financial Results for the Second Quarter Ended June 30, 2022

According to the report, "total revenue increased by 8% to $338 million during the second quarter of 2022, compared to $312 million in the second quarter of 2021 (...) The Company's year-over-year revenue growth primarily reflects continued growth driven by new retail store openings and commencement of adult-use in New Jersey, the acquisition of Bloom Dispensaries, the addition of new wholesale partner accounts, product launches, and the expansion of cultivation and production facilities."
The company stated that the growth in retail revenue was primarily due to strong growth across Curaleaf's footprint and the opening of 28 new stores over the year, namely in Arizona (including the acquisition of Bloom Dispensaries), Florida, Maine, and Pennsylvania and the commencement of adult-use in New Jersey.

New Curaleaf Earnings

Curaleaf Holdings, Inc. CURLF revealed three new hires are joining the company's executive leadership team this month. Ed Kremer will join as a chief financial officer, Camilo Lyon was named chief investment officer and Mitch Hara is the new chief strategy officer, a new role at the company. 

Newly appointed CFO Ed Kremer used to work for a competitor of the company, Jushi Holdings Inc. JUSHF as its CFO. Jushi filed and settled the lawsuit for 'Tortious Interference' with the former CFO and Curaleaf.

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