Curaleaf Stock Trading Lower On FY22 Net Revenue Growth Of 12%

Curaleaf Holdings, Inc. CURLF CURA released its financial and operating results for the fourth quarter and year ended December 31, 2022, revealing net revenue of $1.336 billion, a 12% increase compared to $1.195 billion in FY 2021.

Full Year 2022 Financial Highlights

• Gross profit of $579 million and gross margin of 43%, compared to $570 million and a gross margin of 47% in FY 2021.

• Net loss attributable to Curaleaf of $370 million or net loss per share of $0.52, compared to a loss of $206 million or $0.29 per share in FY 2021.

• Adjusted EBITDA of $305 million or 23% of revenue, excluding non-cash goodwill impairments and inventory write-downs of $225 million.

Q4 2022 Financial Highlights

• Net Revenue of $352.5 million, a 14% increase year-over-year, and 4% increase quarter-over-quarter

• Gross profit of $78.1 million and gross margin of 22%

• Net loss attributable to Curaleaf was $260.3 million, compared with a net loss of $51.4 million in the third quarter of 2022 and $73.0 million in the fourth quarter of 2021.

• Adjusted EBITDA of $73M or 21% of revenue, excluding non-cash goodwill impairments and inventory write-downs totaling $225 million

• Cash position at quarter end totaled $163 million

Boris Jordan, executive chairman of Curaleaf, stated, "2022 was another record year for Curaleaf that further solidified our leadership position in the industry. In the fourth quarter, we delivered sales growth of 14% to $352.5 million , with an adjusted gross margin of 47% and adjusted EBITDA margin of 21%. For the year, we grew revenue by 12% to $1.34 billion , with an adjusted gross margin of 50% and adjusted EBITDA margin of 23%. We generated $46 million in operating cash flow and ended the year with $163 million in cash on our balance sheet. We have a strong cash position and will continue to invest in the right opportunities for growth domestically and abroad. I am pleased that we took the necessary actions in Q4 and early Q1 to reduce expenses and streamline the organization, positioning us for years of profitable growth to come."

Price Action

Curaleaf shares were trading 7.9% lower at $2.4 per share at the time of writing Tuesday morning.

Photo by Tim Foster on Unsplash

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