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Curaleaf reports earnings

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TheQueen
(@gtosali1967)
Reputable Member
Joined: 11 months ago
Posts: 180
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Second Quarter 2022 Revenue of $338 Million, an increase of 8% sequentially and YoY

Second Quarter 2022 Adjusted EBITDA(1) of $86 Million, an increase of 18% sequentially and 2% YoY

Generated $12 Million of Positive Operating Cash Flow for the First Half of 2022

WAKEFIELD, Mass., Aug. 8, 2022 /PRNewswire/ -- Curaleaf Holdings, Inc. (CSE: CURA) (OTCQX: CURLF) ("Curaleaf" or the "Company"), a leading international provider of consumer products in cannabis, today reported its financial and operating results for the second quarter ended June 30, 2022. All financial information is provided in U.S. dollars unless otherwise indicated.

 
Second Quarter 2022 Financial Highlights (Unaudited) 
 ($ thousands) 
 
                                        Three months ended 
                        -------------------------------------------------- 
                         June 30, 2022    March 31, 2022    June 30, 2021 
                        ---------------  ----------------  --------------- 
Total Revenue            $      337,553   $       313,074   $      312,205 
Gross profit before 
 impact of biological 
 assets                         175,884           154,870          155,238 
Gross profit on 
 cannabis sales(1)(2)           174,654           153,617          154,527 
Gross margin on 
 cannabis sales(1)(2)            51.9 %            49.3 %           49.6 % 
Adjusted EBITDA(1)(2)            86,177            72,945           84,372 
Net loss attributable 
 to Curaleaf Holdings 
 Inc.                          (28,336)          (19,985)          (4,847) 
Net loss per share -- 
 basic and diluted       $       (0.04)   $        (0.03)   $       (0.01) 
 
 
 
(1)  Represents a Non-IFRS financial measure or Non-IFRS ratio without a 
     standardized definition under IFRS, which may not be comparable to 
     similar measures used by other issuers. 
(2)  See "Non-IFRS Financial and Performance Measures" below for definitions 
     and more information regarding Curaleaf's use of Non-IFRS financial 
     measures and Non-IFRS ratios. See the sections entitled "Gross Profit on 
     Cannabis Sales" and "Adjusted EBITDA" below (pg. 5) for reconciliations 
     of Non-IFRS measures to the most directly comparable IFRS measures. 
 

Earnings Call: Monday, August 8, 2022, at 5:00 P.M. ET

Conference ID # is 7759736

Replay ID # is 4470743

U.S. Callers: +1-844-763-8274

U.S. Replay: +1-877-344-7529

International Callers: +1-412-717-9224

International Replay (Toll): +1-412-317-0088

Canadian Callers: +1-416-639-5883

Canadian Replay: +1-855-669-9658

The teleconference will be rebroadcasted starting at 7:00 P.M. ET

on August 8, 2022 and will end at 7:00 P.M. ET on August 15, 2022

Boris Jordan, Executive Chairman of Curaleaf, commented, "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. 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. I am also very pleased to report that thanks to our 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."

Matt Darin, Chief Executive Officer of Curaleaf, stated, "In the second quarter we made key adjustments and some bold decisions to focus on operational excellence, innovative products and brands, and leadership talent, and we 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. The power of our platform, our products and our people is undeniable, and we are now realizing the impact our long term strategy both in the U.S. and abroad. And with today's announcement of key hires in our Chief Financial Officer, Chief Investment Officer and Chief Strategy Officer, I am more confident than ever that Curaleaf will continue to be the global leader in the cannabis industry."

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 has 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 the 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 
 
 Revenue (Unaudited) 
 ($ thousands) 
 
                                        Three months ended 
                        -------------------------------------------------- 
                         June 30, 2022    March 31, 2022    June 30, 2021 
                        ---------------  ----------------  --------------- 
Retail revenue            $     251,920    $      226,109   $      222,147 
Wholesale revenue                84,403            85,712           89,347 
Management fee income             1,230             1,253              711 
                        ---  ----------  ---  -----------      ----------- 
Total Revenue             $     337,553    $      313,074   $      312,205 
 
Number of retail 
 stores                             135               128              107 
Wholesale accounts                2,200             2,200            2,000 
 

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.

Retail revenue increased by 13% to $252 million during the second quarter of 2022, compared to $222 million in the second quarter of 2021, representing 75% of total revenue. 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.

Wholesale revenue decreased 6% to $84 million during the second quarter of 2022, compared to $89 million in the second quarter of 2021, representing 25% of total revenue. Contraction in wholesale revenue during the quarter was largely due to the Company's continued assessment of the wholesale marketplace in California and Colorado.

 
Gross Profit on Cannabis Sales (Unaudited) 
 ($ thousands) 
 
                                        Three months ended 
                        -------------------------------------------------- 
                         June 30, 2022    March 31, 2022    June 30, 2021 
                        ---------------  ----------------  --------------- 
Retail and wholesale 
 revenue                 $      336,323   $       311,821   $      311,494 
Cost of goods sold              161,669           158,204          156,967 
                            -----------      ------------      ----------- 
Gross profit on 
 cannabis sales (1)      $      174,654   $       153,617   $      154,527 
Gross margin on 
 cannabis sales (1)              51.9 %            49.3 %           49.6 % 
Management fee income 
 (2)                              1,230             1,253              711 
Gross profit before 
 impact of biological 
 assets                  $      175,884   $       154,870   $      155,238 
 
 
 
(1)  Represents a non-IFRS measure or Non-IFRS ratio. See "Non-IFRS Financial 
     and Performance Measures" below for definitions and more information 
     regarding Curaleaf's use of Non-IFRS financial measures and Non-IFRS 
     ratios. 
(2)  Management fee income is added to Gross Profit on Cannabis Sales to 
     obtain Gross profit before impact of biological assets, the most 
     comparable IFRS measure. 

   
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D. H. Taylor
(@dhtaylor)
Noble Member Admin
Joined: 2 years ago
Posts: 1053
 

Solid increase on revenue of almost 8% QoQ.  This is an important company to be printing big numbers.  


   
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