Proactive Investors - Curaleaf (CSE:CURA) Hldgs Inc. reported third quarter earnings after the market close on Thursday that missed Wall Street estimates but that showed the company’s efforts to reduce its costs are paying off.
Revenue increased by 2% year-over-year from $325.8 million to $333.2 million, short of Wall Street estimates of $341.4 million.
Retail revenue made up 82% of total revenue and grew 6% year-over-year to $273.2 million on new store openings and the launch of a new adult-use market in Maryland.
Curaleaf's loss of $70.8 million or $0.10 per share missed estimates of a loss per share of $0.06.
The company also reduced its inventory by $18 million, exiting the quarter with $118 million in cash and improved its adjusted gross margin sequentially by 60 basis points to 45.7%.
“With significant near-term state and regulatory catalysts on the horizon, coupled with our proposed uplisting to the Toronto Stock Exchange and our early mover advantage in Europe give us great confidence in Curaleaf's future,” Curaleaf CEO Boris Jordan said in a statement.
“I am very encouraged by the team's commitment and discipline, and remain bullish for a strong end to 2023 and an exciting 2024."
Curaleaf CFO Matt Darin noted during the last two quarters the company had significantly reduced its expenses and scaled back production to right-size its inventory.
“The growth catalysts of Germany, New York, Ohio, and potentially Florida and Pennsylvania position Curaleaf incredibly well for years of market share gains,” Darin said.
Shares of Curaleaf traded down 0.9% at US$3.01 at noon on Friday.