Curaleaf Q1 Revenue Grows 14%, Optimizing U.S. Assets & Heading To Europe Says Boss Boris Jordan

Curaleaf Holdings Inc. CURA CURLF released its financial results for the first quarter ended March 31, 2023.

Q1 2023 Financial Highlights

• Net Revenue of $336.5 million, a year-over-year increase of 14% compared to Q1 2022 revenue of $296 million, which excludes discontinued operations
• Gross profit of $160.8 million and gross margin of 48%
• Adjusted gross profit net of add-backs of $162 million, adjusted gross margin of 48%
• Net loss attributable to Curaleaf Holdings, Inc., including discontinued operations, of $54.4 million or net loss per share of $0.07
• Adjusted net loss from continuing operations attributable to Curaleaf Holdings, Inc.(1) of $46 million or adjusted net loss per share1 of $0.05
• Adjusted EBITDA of $73.2 million or 22% of revenue
• Cash position at quarter end totaled $115.8 million

"2023 is off to a strong start for Curaleaf, with first quarter year-over-year revenue growing 14% to $336.5 million, beating our guidance of low double-digit growth. Adjusted gross margin was 48% and adjusted EBITDA margin was 22%. We ended the quarter with $116 million of cash on our balance sheet and generated $31 million in operating cash flow from continuing operations,” said Boris Jordan, executive chairman.

“We continue to optimize our U.S. assets for responsible growth and are very excited about the investments we are making internationally, setting the stage for robust growth in '24, '25, and '26 as cannabis adoption accelerates across Europe. We've entered 2023 from a position of strength with ample cash on hand, and will be investing in our business, setting us up for years of market share expansion."

Operational Highlights

• In the first quarter of 2023, Curaleaf exceeded its expense reduction plan, opened three new dispensaries in Florida, closed operations in California, Colorado, and Oregon, and launched the JAMS edibles brand in Arizona and Florida. It expanded its brands to New Jersey and Florida, started adult-use cannabis sales in Connecticut, and made facility changes in Massachusetts and Florida.
• Post Q1 2023, it acquired Deseret Wellness in Utah and achieved record-breaking sales on 4/20. Curaleaf also launched a mobile app and loyalty program with 1.9 million members and expanded its Grassroots brand to Florida.

"Since I moved into the CEO role one year ago we've moved decisively to maximize opportunities in high-growth markets while scaling back from unprofitable markets. We are laser-focused on operating efficiencies in every aspect of our business both in the U.S. and Europe, establishing a lean asset base from which we will drive margin improvements, operating leverage, and cash generation," said Matt Darin, Curaleaf CEO who was a featured speaker at the recent Benzinga Cannabis Capital Conference in Miami Beach. "Our focus is on profitable, responsible growth as we continue to innovate new products, strengthen our brand portfolio, and deliver a best-in-class retail experience."

Price Action: On Wednesday evening, CURLF shares closed at $2.72 per share, trading 6.73% higher.

Image by Benzinga