- Charlotte’s Web Holdings (TSX:CWEB) has said that it is expecting slowed growth in its retail sector this year
- The company cited uncertainty surrounding regulatory progress and timing, as well as COVID-19, as its primary concerns
- Revenue for 2019 was up 36 per cent to C$136.91 million compared to the year before
- The company also had $99.28 million in cash reserves as of December 31, 2019
- Charlotte’s Web Holdings (CWEB) is currently up 7.84 per cent to $5.50 per share, with a market cap of $547.31 million
Charlotte’s Web Holdings (TSX:CWEB) has said that it is expecting slowed growth in its retail sector this year.
The company announced its fourth quarter and year-end financial results today, which commented on the precarious future of both the company and the wider cannabis industry.
Ongoing uncertainties surrounding regulatory progress and timing were cited as the company’s primary concerns. However, the global impact of COVID-19 has also brought difficulties to an already struggling industry.
That said, Charlotte’s Web has anticipated that revenue for the first quarter of 2020 will be in the area of C$30 million. The company also forecast topline growth of between 10 and 20 per cent for the full year.
Despite the uncertainty clouding the current state of cannabis businesses, 2019 was a reasonably successful year for Charlotte’s Web.
Organic revenue was up 36 per cent to $136.91 million compared to the year before. 70 per cent of this, or $95.37 million, was recorded as gross profit.
As of December 31, 2019, Charlotte’s Web had $99.28 million in cash reserves and $169.18 million in working capital.
A key driver behind the increased depth and breadth of the company’s revenue was the introduction of 24 new products. Charlotte’s Web also noted that more than 10,000 outlets currently stock its products.
Deanie Elsner, CEO of Charlotte’s Web Holdings, explained that 2019 was a transformational year that brought the company from start-up to a stand-alone consumer packaged goods (CPG) business capable of serving mass retail channels.
“Management systems and processes were implemented to drive operational excellence, and to support the next phase of mass retail growth we commenced expansion of our cultivation and production capacity.
“Infrastructure investments will continue throughout 2020 and position the company to launch into the [food, drug, mass] channel once an appropriate regulatory framework is passed,” she said.
In order to maximise its sales channels, Charlotte’s Web has said that it plans to bolster its direct-to-consumer ecommerce arm.
The fourth quarter of last year saw a 14 per cent increase in online sales compared to the same period in 2018.
With the completion of a significant upgrade to its digital store and the planned introduction of new products, the company added that it will continue to increase investments throughout this year.
Charlotte’s Web Holdings (CWEB) is currently up 7.84 per cent to $5.50 per share at 10:08am EST.