Despite rising sales, Charlotte’s Web posts Q3 loss

BOULDER — Charlotte’s Web Holdings Inc. (OTC:CWBHF), a local CBD product manufacturer, grew its revenue in the third quarter of fiscal year 2019, but posted a loss for the period.

The firm’s quarterly revenues were $25.1 million, up nearly 42 percent from the same period in 2018. However Charlotte’s Web’s increasing expenses dragged the firm’s overall results into the red.

Charlotte’s Web recorded a net loss of $1.3 million in the third quarter after posting a $1.8 million profit during that quarter in 2018. For the first three quarters of the fiscal year, the firm has recorded net income of $3.2 million.

The third quarter was an important one for Charlotte’s Web’s distribution network. Kroger Co. expanded sales of the firm’s products to 1,350 stores in 22 states.

Production capacity was also boosted with the recent lease of a nearly 137,000-square-foot flex office space in Louisville’s Colorado Technology Center business park.

We are prudently investing in the expansion of our production and distribution capacities as planned, ahead of anticipated FDA regulatory clarity that could enable wider adoption of our product portfolio,” Charlotte’s Web CEO Deanie Eisner said in a prepared statement. “We remain hopeful that broad political support will help drive quick regulatory resolutions in 2020.”

Ken Amundson

Ken Amundson is managing editor of BizWest. He has lived in Loveland and reported on issues in the region since 1987. Prior to Colorado, he reported and edited for news organizations in Minnesota and Iowa. He's a parent of two and grandparent of four, all of whom make their homes on the Front Range. A news junkie at heart, he also enjoys competitive sports, especially the Rapids.