Charlotte’s Web boosts revenue, names new CFO

BOULDER — Charlotte’s Web Holdings Inc., (OTCMKTS: CWBHF), a Boulder-based CBD product maker, posted higher quarterly revenues and named a new chief financial officer Wednesday. 

The company recorded revenues of $25 million for the second quarter of fiscal year 2019, up from $17.2 million during the same period of 2018.

Despite the revenue increases, Charlotte’s Web’s net income for the most recent quarter was down slightly. The company posted income of $2.2 million in the second quarter, down from $3.7 million last year.

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Second-quarter operating expenses increased 98 percent year-over-year to $16.2 million to support expansion, including senior management additions to the leadership team, according to Charlotte’s Web earnings report.

The company has not only bolstered its executive team — which now includes a former Kellogg president and a former Coca-Cola Co. executive — but also grew its rank-and -ile workforce. The company had 226 employees at the end of the second quarter of 2018. The headcount now is 320.

The firm announced Wednesday that it has hired former Brown Shoe Co. chief financial officer Russell Hammer to serve in the same role at Charlotte’s Web. 

“We have been experiencing increased sales through both our e-commerce and retail sales channels,” Charlotte’s Web CEO Deanie Elsner said in a prepared statement. “Top tier mass retailers are entering the market as several national grocery and drugstore brands have announced their CBD plans. The majority of these are now carrying Charlotte’s Web products. This is a significant development for the hemp CBD category. To effectively service projected growth, we have been building our executive leadership with experienced consumer-packaged goods executives in sales, marketing, finance, data and operations. Similarly, we are expanding our capabilities in cultivation, R&D, production and distribution.”