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.
SPONSORED CONTENT
The many benefits of simple, coordinated healthcare
Kaiser Permanente combines health care and coverage in one connected system to maximize employee health and minimize employer costs.
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.