Curaleaf Holdings, Inc. (CURA.CN) delivered total revenue of $21.4 million, an increase of 289% for the third quarter ending September 30, 2018, versus $5.5 million for the same time period in the previous quarter. Total revenue increased 47% sequentially, compared to $14.6 million in the second quarter of 2018.
The company recorded a gross profit of $13.8 million, excluding the impact of biological assets, an increase of 360%, compared to $3.0 million in Q3 2017. The net loss was $33.7 million for the 2018 third quarter, including a $25 million one-time, non-cash, accounting entry as part of the RTO transaction and investments in new store openings and facilities, compared to a net income of $0.5 million in Q3 2017. Gross profit margins, excluding the impact of biological assets, was 64%, compared to 55% in Q3 2017.
“The expansion of our retail footprint was one of several key factors that drove significant year-over-year quarterly revenue growth of 289%, a majority of which was attributable to organic growth,” said Joe Lusardi, Chief Executive Officer of Curaleaf. “With the closing of our US$400 million private placement and going-public transaction in October, we strengthened both our balance sheet and ability to accelerate our growth objectives in 2019. With a strengthened balance sheet, we are actively seeking accretive acquisitions in several major markets across the United States, including Maryland, Massachusetts, Nevada, Florida, Arizona, and Connecticut.”
Curaleaf has approximately $320 million in cash after paying an aggregate of $65m for the minority buyouts in Florida and Connecticut of $25 million and $40 million respectively.
For the full year 2019, Curaleaf said that it estimates it will post revenue of $400 million including revenue generated by the non-profits, and free cash flow of $100 million. Curaleaf expects to complete two acquisitions in the fourth quarter of 2018 in Maryland and Massachusetts. At the end of 2018, Curaleaf also expects to have at least 40 operational stores.
The company plans to increase its footprint to at least 67 retail stores by the end of 2019. Curaleaf also expects to increase same-store sales at existing retail dispensaries.