Curaleaf Holdings, Inc. (CSE: CURA) (OTCQX: CURLF) reported its financial results for the first quarter ended March 31, 2022, with total revenue increasing by 20% to $313 million versus $260 million in the first quarter of 2021. Curaleaf said that the revenue growth primarily reflected continued organic growth driven by new retail store openings, the addition of new wholesale partner accounts, product launches, and the expansion of cultivation and production facilities. Revenue fell sequentially by 2% from the fourth quarter’s $320 million and missed the Yahoo Finance average analyst estimate for revenue of $319 million.
Curaleaf also reported a net loss of $20 million, which was higher than last year’s net loss of $15 million in the first quarter of 2021. The company said that the net result was primarily impacted by approximately $12 million of higher income tax expense and $2 million of higher other expenses, net, partially offset by an $8 million increase in operating income. The earnings were for a loss of three cents per share, which beat the estimates for a loss of four cents per share.
Boris Jordan, Executive Chairman of Curaleaf, commented, “Our national footprint has always been a key advantage of our growth strategy, and despite a tough macro environment during the first quarter, Curaleaf continued to grow share in several important markets. We saw strong month-over-month growth beginning in March and heading into the second quarter, boosting confidence in our ability to hit full-year revenue guidance of $1.4 billion – $1.5 billion. Given renewed optimism surrounding federal banking reform, a record breaking 4/20, the exciting launch last month of New Jersey adult-use sales, and the prospect of New York following suit, 2022 is shaping up to be another milestone year.”
Curaleaf noted that its retail revenue increased by 21% to $226 million during the first quarter of 2022, versus $188 million in the first quarter of 2021, representing 72% of total revenue. Growth in retail revenue was primarily due to strong organic growth across Curaleaf’s footprint and the opening of 26 new stores over the year, namely in Arizona, Florida, and Pennsylvania. Wholesale revenue increased 19% to $86 million during the first quarter of 2022, compared to $72 million in the first quarter of 2021, representing 27% of total revenue. Growth in wholesale revenue was due to an over 10% year-over-year expansion in the number of wholesale accounts as well as additional capacity coming online in key markets.
Joe Bayern, Chief Executive Officer of Curaleaf, stated, “Our continued focus on research & development of innovative new products, commercialization, national distribution and brand building were cornerstones of the first quarter. From the launch of our proprietary ACE extraction system in Florida – which produces the purest live rosin product in the market – to new products launched in the last 12 months generating 17% of our revenues, our long-term focus on attracting new consumers with highly formulated products backed by science continues to drive growth. This advantage will help Curaleaf continue to expand Adjusted EBITDA margins.”
As of March 31, 2022, the company had $243 million of cash and $584 million of outstanding debt net of unamortized debt discounts. This has dropped from $299 million at the end of 2021.