Charlotte’s Web sales slowed but bottom line improved in 4th quarter, fiscal 2023

LOUISVILLE — Charlotte’s Web Holdings Inc. (TSX: CWEB) (OTCQX: CWBHF), a Louisville manufacturer of CBD products, saw its revenues contract in the fourth quarter of 2023 and for the full 2023 fiscal year, but the company was also able to reduce its net loss for both periods. 

The company posted a net loss of $8.5 million in the fourth quarter on sales of $15.9 million. That’s compared to a net loss of $35.2 million on sales of $18.9 million in the same period of 2022. 

“CBD product sales remain below expectations due to ongoing headwinds in the overall CBD category, including regulatory ambiguities at the federal and state levels, associated consumer confusion, and competitive crowding and pricing pressures,” Charlotte’s web said in its earnings report this week. “The company believes that continued positive legislative progress in Washington, D.C., for the regulation of CBD will increase incremental consumer interest and confidence as well as unlock opportunities to distribute ingestible products through the mass retail channel.”

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For the full 2023 fiscal year, CW’s net loss was $23.8 million on sales of $63.2 million. The company posted a net loss of $59.3 million on sales of $74.1 million in 2022.

“Maintaining healthy gross margins despite lower revenue was primarily driven by supply chain efficiencies,” Charlotte’s Web said.