CEO Boris Jordan said Curaleaf would continue looking for paths to profitability, including through international expansion.
Connecticut-based Curaleaf Holdings, Inc. (CURA: CA) (OTCQX: CURLF) on Wednesday posted a net loss of $44 million for the third quarter of 2024, bringing its total losses for the year to $144 million despite more than $1 billion in revenue as of Sept. 30. Curaleaf’s stock took a major hit on the day losing 29% of its value as investors who had hoped for good news in Florida threw in the towel and walked away.
Revenue for the multistate operator was relatively flat year-over-year in the third quarter, at a 1% decrease to $330.5 million from $333.2 million. Revenue was disappointing considering the company added additional stores during the quarter. The revenue missed the Yahoo Finance average analyst estimate for revenue of $343 million. Curaleaf reported operating and free cash flow of $42.3 million and $14.5 million respectively for the quarter.
Executive Chairman and CEO Boris Jordan, who took full control of Curaleaf in August with the departure of CEO Matt Darin, blamed the numbers on “the pressures of regulatory overhang, increased competition, unprecedented weather conditions, and irrational pricing strategies.”
Jordan said he remains focused on “sustainable, profitable organic growth by maintaining share in challenged markets and growing share where we see strategic opportunity,” and noted that Curaleaf’s international cannabis holdings have been bearing fruit.
The international Curaleaf division “grew 82% year-over-year and 17% quarter over quarter to $30 million,” Jordan said. “By design, our global presence offers a diversification of revenue streams that mitigates concentration risk.”
Also during the most recent quarter, Curaleaf reported that it opened two additional dispensaries in New York, in Rochester and Syracuse, and also added recreational marijuana sales to two of its other existing shops, thus expanding its footprint in the Empire State as that key market continues developing.
The company also launched recreational marijuana sales this past quarter in Ohio, as that state came online in August.
To close the quarter, Curaleaf brought its national dispensary footprint to 150 stores with the addition of two more dispensaries in Florida, in the towns of Pensacola and Destin.
As of Sept. 30, Curaleaf had $3 billion in total assets, including $89.9 million in cash, against $1.6 billion in total long-term liabilities. Since that wasn’t enough debt, the company also announced it completed a new $40 million revolving credit facility with a major commercial regional bank. The new two-year secured revolving credit facility has a maturity date of December 15, 2026.
After the close of the third quarter, Curaleaf also noted that it debuted yet another pair of dispensaries in Florida, in Port St. Lucie and Miami, increasing its Florida presence alone to 66 shops. Curaleaf also introduced its first marijuana flower product to the German cannabis market and rebranded a trio of Nevada dispensaries.
H/T: www.greenmarketreport.com
