Charlotte’s Web posts $11.5M loss in first quarter
BOULDER — Charlotte’s Web Holdings Inc. (OTCQX: CWBHF) reported a first-quarter loss and slightly lower revenue compared with the same period a year ago.
The Boulder-based producer and distributor of hemp-based cannabidiol products reported revenue of $21.5 million in the first quarter ended March 31, down slightly from $21.7 million in the first quarter of 2019.
The company lost $11.5 million, compared with net income of $2.3 million a year ago. Cash in hand increased to $53 million, with $114.9 million in working capital.
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Charlotte’s Web CEO Deanie Elsner said in a prepared statement that the company’s first-quarter revenue was “ahead of expectations,” driven by strong e-commerce sales direct to consumers and a new technical platform.
“Operationally we have not had any business disruptions from COVID-19 and have adapted well to the remote working environment,” she said.
First-quarter revenue was affected by lower B-to-B sales, which declined 31.5%.The company attributed the decline to increased competition in the natural-retail channel, as well as a lack of regulatory guidance from the U.S. Food and Drug Administration.
Direct-to-consumer sales increased 29.4%, driven by a new technical platform, along with ongoing marketing and social-media campaigns.
Russ Hammer, Charlotte’s Web chief financial officer, said the company anticipates revenue growth of 10% to 20% and a return to profitability by the end of the year.
