CBD firm Charlotte’s Web sales fall, expenses reduced

LOUISVILLE — Louisville-based CBD company Charlotte’s Web Holdings Inc. (TSX: CWEB) posted lower year-over-year sales in the fourth quarter of 2024 and for the full 2024 fiscal year, but was able to stabilize its expenses.

Charlotte’s Web posted sales of $12.7 million in the most-recent quarter, down from $15.9 million in the final quarter of 2023. For the full 2024 fiscal year, revenues were $49.7 million, down from $63.2 million in 2023.

“In the fourth quarter, some retailers were negatively impacted by state regulations restricting the sale of certain CBD products, despite meeting federal requirements,” CW said in its earnings release. “However, e-commerce revenue increased quarter-over-quarter following the launch of the Company’s new e-commerce platform.”

The company was able to trim its net losses in the fourth quarter of last year to $3.4 million from a net loss of $8.5 million in the same period in 2023. In fiscal 2024, CW’s net loss was $29.8 million compared with a net loss of $23.8 million in 2023.

“Stringent expense controls were implemented during the year to better align with current revenue levels,” the company said.

Charlotte’s Web is positioned “for sustained growth in 2025,” CW CEO Bill Morachnick said in the release. “With the successful launch of new product innovations, expanded retail partnerships, and transition underway to in-house manufacturing, we have laid the foundation for further strengthening the business in 2025. We’re particularly excited to announce that we will soon be offering our functional mushroom gummies on Amazon.com, representing our first meaningful presence on Amazon and introducing the Charlotte’s Web brand to millions of potential new customers. This not only diversifies our revenue streams but also reflects our commitment to access, including where consumers increasingly purchase health and wellness products. We are committed to delivering shareholder value through disciplined execution and continued expansion, evolving as a broader botanical wellness leader, beyond CBD.”

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