Clever Leaves Reports 21% Revenue Growth And 10% Gross Profit Rise In 2Q 2023

Clever Leaves Holdings Inc. CLVR, a multinational cannabis company, announced its financial and operational results late Monday for the second quarter ending June 30, 2023.

21% Revenue Boost

The company reported a 21% year-over-year increase in revenue, driven by a remarkable 151% growth in the cannabinoid segment, attributed to strong sales traction for its extracts.

Despite revenue challenges within the specialty retail channel, Clever Leaves maintained a solid margin performance in its non-cannabinoid business.

Gross profit also demonstrated growth, totaling $2.7 million, a 10% increase from the year-ago quarter, driven by revenue expansion. However, the gross margin slightly decreased to 54.7% due to customer and product mix differences.

Net loss for Q2 2023 was $3.6 million, partly influenced by gains in the year-ago quarter.

The company reported its operational efficiency efforts were evident as it achieved a substantial 25% year-over-year reduction in operating expenses, resulting in improved Adjusted EBITDA performance of ($2.1) million for Q2 2023 compared to ($3.5) million in the previous year.

Cost Savings and Positive Financial Impact, Says Clever Leaves CEO

According to Andres Fajardo, CEO of Clever Leaves, the restructuring initiatives, including the wind-down of its Portuguese operations, contributed to enhanced cost savings.

"With the restructuring initiatives implemented over the past year, including our wind-down in Portugal, we reduced our cash expenditure run rate and driven increased cost savings in the first half of 2023 resulting in $5.1 million in cash as of the end of the second quarter,” Fajardo stated. “Subsequent to the end of the second quarter, we completed the sale of our Portuguese processing assets, adding $2.7 million in cash to our balance sheet. We continue to target selling our remaining Portuguese agricultural assets by the end of this year."

Price Action: CLVR stocks were trading higher by 8.71% at $0.227 per share at the time of market close on Monday.

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Photo: Thomas Breher via Pixabay.