Volatility Remains, But Curaleaf Remains On Target For Steady, Consistent Growth – Seeking Alpha

Source: Curaleaf

Curaleaf (OTCPK:CURLF) has a bright future ahead of it, as it continues to enjoy organic growth in its retail segment, is increasing the number of new stores it operates, and is making strategic acquisitions that complement its existing business.

Add to that the inevitability of more states legalizing cannabis and it’s a perfect storm for predictable and sustainable long-term growth, even in the current COVID-19 environment.

In this article, we’ll look at some of its recent numbers, why they will improve, and what the future looks like for Curaleaf going forward.

Latest earnings

With the company focusing primarily on boosting revenue and improving adjusted EBITDA, it was very successful in the last quarter, where both enjoyed solid improvement.

For the second quarter, the company recorded its fifth straight quarter of record adjusted EBITDA, even with the impact of COVID-19 in Nevada and Massachusetts, while also increasing its pro forma and managed revenue to record levels. The company said its “broad geographic base and product diversity” were the keys to its positive results.

Pro forma revenue in the second quarter climbed to $117.5 million, up 22 percent sequentially. Those numbers made it the third MSO to reach the $100 million revenue mark on a quarterly basis.

As for guidance, including its recent acquisition of Grassroots Cannabis, the company is looking for revenue in the third quarter to come in at about $190 million to $200 million.

Managed revenue was $121.4 million in the reporting period, up 120 percent year over year and 16 percent over the last quarter. The company looking to increase that number by a minimum of 57 percent sequentially when taking into account the Grassroots acquisition.

The company estimated that there was a $25.6 million impact on its managed revenue results coming from COVID-19.

Retail

Read More Here...

Share on facebook
Share on twitter
Share on reddit
Share on pinterest
Share on email

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top