Clever Leaves Holdings Inc. (Nasdaq: CLVR) saw a 21% year-over-year rise for revenue in its second quarter, driven by a notable 151% increase in the cannabinoid segment, primarily from extract sales in Australia, Brazil, and Israel.
In a statement, CEO Andres Fajardo credited the quarter’s performance to the company’s execution on its strategic growth objectives, which he said also resulted in optimized cash management and further global market expansion.
Revenue reached $5 million, marking a leap from $4.1 million in the same period last year. This was in line with the average analyst expectation, as compiled by Yahoo Finance.
The cannabinoid segment generated $1.9 million in revenue, a rise from $700,000 in prior year’s time. The growth mainly stemmed from sustained sales of the company’s extract products.
The noncannabinoid segment faced its own set of challenges, particularly with demand headwinds in its specialty channel. Sales for the segment declined 7% to $3.1 million.
Clever Leaves trimmed its operating expenses by 25% year-over-year, with figures dropping from $7.8 million in the second quarter of 2022 to $5.9 million this year. However, the net loss for the quarter was reported at $3.6 million, up from $1 million in the same quarter in 2022, with the cannabinoid segment contributing $1.7 million to the total loss.
Adjusted EBITDA showed improvement during the quarter, registering a loss of $2.1 million compared to a loss of $3.5 million last year.
Fajardo expressed optimism for the second half of the year, emphasizing the company’s continued focus on expanding within and beyond its international target markets, while also refining its operational structure.
After completing restructuring initiatives, including winding down operations in Portugal, the company registered a $5.1 million cash balance at the end of the period.
Clever Leaves sold its Portuguese processing facility to Terra Verde, Lda., affiliated with Curaleaf Holdings, Inc. (CSE: CURA) (OTCQX: CURLF), generating $2.7 million. The total is earmarked for working capital and other corporate needs.
Fajardo highlighted recent business dealings in Europe with SOMAÍ Pharmaceuticals in Portugal and Astrasana Holding AG in Switzerland.
“Exporting to these new markets has expanded our global footprint along with strengthening our strategic regional positioning in Europe,” he added.
Additionally, the company shipped its first Colombian flower to the Australian Natural Therapeutics Group and plans to introduce a second flower strain in Australia later this year.
The company reaffirmed its 2023 financial outlook. It forecasts a full-year revenue between $19 million and $22 million, an adjusted gross margin between 58% and 63%, and adjusted EBITDA losses ranging between $13.6 million and $10.6 million.