After twice delaying its year-end earnings report for 2022, Massachusetts-based Curaleaf (CSE: CURA) (OTCQX: CURLF) disclosed on Monday that it lost $370 million last year, including a $260 million loss in the fourth quarter alone.
The company finished the year with $163 million in the bank and successfully grew revenues by 12% from 2021 to a whopping $1.3 billion. Curalfeaf had an operating cash flow of $46 million and is carrying $623 million in debts.
Executive Chairman Boris Jordan celebrated the earnings report as “another record year for Curaleaf,” despite the nine-figure losses.
“We have a strong cash position and will continue to invest in the right opportunities for growth domestically and abroad,” Jordan said. “I am pleased that we took the necessary actions in Q4 and early Q1 to reduce expenses and streamline the organization, positioning us for years of profitable growth to come.”
CEO Matt Darin also noted Curaleaf’s ongoing expansion through 2022, including the opening of 28 new stores and the launch of 171 new cannabis products. As of May 1, its storefront total sits at 152 dispensaries.
The company has also been on an acquisition spree throughout last year and into 2023, buying up:
- Tryke Companies, a vertically-integrated multistate operator with a footprint in Arizona, Nevada, and Utah.
- Bloom Dispensaries in Arizona.
- Majority stakes in Germany-based Four20 Pharma.
- Deseret Wellness, a three-dispensary chain in Utah.
Earlier this year, Curaleaf also announced it’s discontinuing operations in California, Colorado, and Oregon as a move to cut costs and reduced payroll hours by 10% to save $60 million.
The total annual losses for last year are a more than 30% increase from 2021, when Curaleaf posted a $205 million loss for the year.
In the fourth quarter of 2022, Curaleaf pulled in $352 million in revenue, but still lost $260 million overall.
The company said that the increase in its annual net loss was “mainly due to $225 million of non-cash goodwill impairments and inventory write-downs primarily associated with the state exits.”
Revenues last year included just over $1 billion from retail, up 18% from $859 million the year prior, and $316 million from cannabis wholesaling, a decrease of 5% from $333 million. Retail increases were driven by new store openings while wholesale declines were due to price compression, Curaleaf reported.