Q4 Financials Of Cannabis MSO, Curaleaf, Show Improvement Across The Board

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Curaleaf Holdings, Inc. (CURA) (CURLFreported its financial and operating results for the fourth quarter ended December 31, 2023, last week. All financial information is provided in U.S. dollars unless otherwise indicated and compared with the previous quarter.

Q4 Financial Highlights

  • Total Revenue: UP 3.6% to $345.3M
  • Gross Profit: UP 4.1% to $156.2M
  • Adj. EBITDA: UP 10.2% to $83.0M 
  • Net Loss: Reduced by 37.5% to $(57.7)M
    • Net Loss/Share:  UP to $(0.08) from $(0.13)
  • Cash on Hand: DOWN 22.3% to $91.8.0M
  • Outstanding Debt: UP 0.7% to $587.8M

Management Commentary

Boris Jordan, Founder and Executive Chairman, commented:

  • " "I'm pleased to report that the work we've done over the past several quarters has paid off: In the fourth quarter, we generated:
    • record revenue of $345 million,
    • adjusted gross margin of 46%,
    • and adjusted EBITDA was $83 million or 24% of sales.
  • Our gross margin trajectory is improving faster than we initially anticipated as we have turned on idle capacity to meet increasing demand, and see our first quarter margins in 2024 approaching 50%...
  • The global opportunities we've been building our business toward are unfolding rapidly, and 2024 will be Curaleaf's catalyst year.
  • Our global brand portfolio is second to none, and our amazing team members continue to deliver with energy and enthusiasm. I am happy to say that Curaleaf's future has never been greener."

Matt Darin, Chief Executive Officer, stated: 

  • " Our fourth quarter results are a solid reflection of the discipline and rigor we have put into evolving our business and the committed work of our team members. It is thanks to all of them that we have:
    • leading market share and growth in key markets like Arizona, Florida, New York and Pennsylvania,
    • a domestic wholesale business that grew 15% sequentially, for the year,
    • and a U.S. retail business that grew 9% for the year, eclipsing the $1 billion mark for the first time.
  • We're excited about our portfolio of brands and innovative new products, as well as the potential of our retail footprint as adult use expands.
  • We are encouraged by the momentum we see in our business because of the strategic changes we've made.
  • There is no doubt that Curaleaf is poised for a solid 2024 and beyond."

Q4 Operational Highlights

  • In Florida, we opened one additional store in Sarasota, totaling 61 stores in the state.
  • In December, we began selling into the New York adult-use wholesale market.
  • On December 14th, we completed our up=listing to, and commenced trading on, the Toronto Stock Exchange.
  • Entered into an agreement to sell our Maine, adult-use store.

Stock Performance

Curaleaf's stock price went DOWN 10.2% during Q4, went UP 15.5% by March 5th in anticipation of better financial metrics in the Q4 report only to go DOWN 13.6% since then in response to the Q4 results.

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Disclosure: None

This article has been composed with the exclusive application of the human intelligence (HI) of the author. No artificial intelligence (AI) technology has been deployed. ...

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