Curaleaf Holdings Report 27% Increase in Total Revenue

Curaleaf Holdings Inc report third quarter financial results

Curaleaf Holdings, Inc, a leading vertically integrated cannabis operator in the U.S., today reported its financial and operating results for the third quarter ended September 30, 2019. All financial information is provided in U.S. dollars unless otherwise indicated

Financial Results

Managed Revenue for the third quarter was $73.2 million, an increase of 201% over the prior year and 33% over the prior quarter. Pro Forma Revenue for the third quarter was $129.0 million. 

Total Revenue for the third quarter of 2019 increased 189% year-over-year to $61.8 million, compared to $21.4 million in the third quarter of 2018. Total Revenue for the third quarter of 2019 increased 27% over the prior quarter. 

Retail and wholesale revenue increased more than three-fold to $50.7 million during the quarter, compared to $16.6 million in the third quarter of 2018. The increase in retail and wholesale revenue was primarily due to organic growth in Florida, New York and acquisitions in Arizona and Maryland. Additionally, wholesale revenue increased in Massachusetts as a result of the number of newly opened adult-use dispensaries.

Gross profit before impact of biological assets for the third quarter of 2019 was $34.7 million, compared to $13.9 million for the third quarter of 2018. The increase was due to continued improvement in the operating capacity of the Company's cultivation and processing facilities. 

Gross profit on cannabis sales was $23.6 million in the third quarter of 2019, resulting in a 47% margin, compared to $9.1 million in the third quarter of 2018. The increase was due to the mix in retail revenue over wholesale revenue and continued improvement in the operating capacity of the Company's cultivation and processing facilities. 

Adjusted EBITDA was $9.0 million for the third quarter of 2019, compared to a loss of $3.2 million for the third quarter of 2018. 

Net loss for the third quarter of 2019 was $7.4 million, compared to a net loss of $35.6 million in the third quarter of 2018.

The decrease was primarily driven by a decrease in other expense related to a loss on the change in fair value of convertible notes in 2018, partially offset by an increase of $7.7 million in depreciation and amortization and an increase of $4.7 million in share-based compensation.

Both of which are non-cash, an increase of $5.2 million in one-time charges, primarily business development, acquisition and financing related, an increase of $3.2 million in net interest expense and an increase of $2.6 million in the provision for income tax.

To learn more about Curaleaf Holdings Inc visit their Company HQ here

Disclaimer: Past performance is not an indicator of future performance.

Disclaimer: past performance is not an indicator of future performance
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Niki Mohazeb
Niki Mohazeb

Niki is a Sydney based writer, with a passion for promoting the health benefits of medicinal cannabis. Niki also enjoys researching and writing about the future of cannabis along with the many other benefits that the plant provides, such as the diverse utilities of hemp.

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