Breaking News
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

Curaleaf Posts Net Loss As It Continues To Expand U.S. Retail Footprint

By Investing.com (Brenda O'Farrell/Investing.com)Stock MarketsMay 10, 2022 10:01
uk.investing.com/analysis/curaleaf-posts-net-loss-as-it-continues-to-expand-us-retail-footprint-200518296
Curaleaf Posts Net Loss As It Continues To Expand U.S. Retail Footprint
By Investing.com (Brenda O'Farrell/Investing.com)   |  May 10, 2022 10:01
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
 
TRST
0.00%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
CURA
-2.11%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
CURLF
-3.08%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

Shares of Curaleaf Holdings (OTC:CURLF) (CSE:CURA) dropped slightly in after-hours trading yesterday following the cannabis grower's reported first quarter results after the close.

CURLF Daily
CURLF Daily

The Massachusetts-based company, which is currently ranked the second largest multi-state operator in the US, posted revenues of US$313 million for the three-month period that ended Mar. 31. The figure represents a year-over-year increase of 20%.

Retail revenues were up in the first quarter, hitting US$226 million, a 21% increase for the period. In its press release, the company stated:

“The company's year-over-year revenue growth primarily reflects 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.”

Curaleaf operates in 23 states, giving it one of the largest geographic footprints in the United States in the cannabis space. As CEO Boris Jordan explained:

“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.”

During the first quarter, the company opened 11 new retail dispensaries, bringing its total number of retail outlets to 128.

One highlight that dragged on the overall results was the net loss of US$20 million for the quarter, higher than the US$15 million net loss posted in the same quarter in 2021.

Since January, shares of Curaleaf have lost about 32.5%. In the last year, the stock has dropped more than 60%.

CannTrust Renamed

The troubled Canadian cannabis grower CannTrust Holdings (TSX:TRST) got a new name last week.

The company will now go by Phoena Holdings, and as the company’s announcement states, that is pronounced ‘fee-nah.’

Investors led by a subsidiary of Netherlands-based Kenzoll will own 90% of the newly named company, while the remaining 10% will be held by CannTrust Holdings.

The new title, according to management, marks the beginning of a new phase for the company that was removed from creditor protection in March.

In January, the beleaguered company issued a statement outlining a settlement of a class action lawsuit it was hit with, which included an admission it was running short on cash reserves.

The admission of a liquidity shortfall was the last leg of an epic slide for the marijuana grower that spanned a few years. In April 2020, it was delisted from New York Stock Exchange, followed by the delisting on the Toronto Stock Exchange in May 2020 in the wake of seeing its growing licenses suspended after the company was caught growing pot in unlicensed space in its growing facilities in Ontario.

Although its licenses were reinstated, the situation triggered legal problems with investors and led to the class-action suit, that cost more than $50 million to settle.

Switzerland Launches Cannabis Trial

Switzerland will launch a recreational cannabis trial program in August, according to a report by Forbes.

The goal is to collect information on the effects of controlled access to marijuana and consumer behavior. The trial will be run in Basel, the country’s third largest city and only involve 400 people.

According to Forbes, the pilot program is expected to be closely watched by other European countries, many of which are looking to ease restrictions on cannabis use.

Germany plans soon to allow recreational use, while France is already conducting a trial of medical cannabis.

Interested in finding your next great idea? InvestingPro+ gives you the chance to screen through 135K+ stocks to find the fastest growing or most undervalued stocks in the world, with professional data, tools, and insights. Learn More »

Curaleaf Posts Net Loss As It Continues To Expand U.S. Retail Footprint
 

Related Articles

Curaleaf Posts Net Loss As It Continues To Expand U.S. Retail Footprint

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email