Charlotte's Web Holdings, Inc. (OTCQX:CWBHF) released financial results for the second quarter ended June 30, 2022, revealing net revenue was $18.9 million, a decrease of 21.8% versus $24.2 million in Q2 2021.
Q2 2022 Financial Highlights
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Gross profit was $9.3 million, or 49.4% of revenue versus $15.8 million and 65.5% of revenue respectively in Q2 2021.
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Adjusted EBITDA loss for the second quarter of 2022 was $5.4 million as compared to an Adjusted EBITDA loss of $5.1 million in Q2 2021.
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The net loss for the quarter was $7.9 million, or ($0.05) per share on a basic and diluted basis, compared to a net loss of $5.9 million, or ($0.04) per share on a basic and diluted basis in Q2-2021.
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The company's cash and working capital as at June 30, 2022, were $14.8 million and $64.6 million, respectively, compared to $19.5 million and $75.6 million as at December 31, 2021.
Jacques Tortoroli, CEO stated, "While we are disappointed with the second quarter revenue, we achieved significant distribution and customer wins consistent with our growth priorities to expand our coverage in existing channels and enter new verticals. Charlotte's Web products are now available for employer wellness programs through our recent partnership with SBM Ltd.; and in significantly more pharmacies through a new national distributor, giving us increased availability in the industry's largest channel after e-commerce. These new business wins did not contribute to our second quarter performance but will increasingly contribute to growth opportunities moving forward. At the same time, we continued building our international footprint by entering a distribution agreement with a strategic partner for Greater China."
Recent Changes
Thomas Lardieri, former senior vice president of finance at ViacomCBS, Inc., will be appointed to Charlotte's Web board of directors, effective August 10, 2022. Lardieri will serve as the audit committee chairperson and on the corporate governance committee. He replaces outgoing director, Tim Saunders, who has resigned from his position on the board of directors, effective August 10, 2022, to enter retirement and spend more time with family.
Photo by CRYSTALWEED cannabis on Unsplash
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