New financial results recently announced by Charlotte’s Web Holdings are a clear indication of how well the company is doing this year. The market leader in full-spectrum hemp extract wellness products released financial results for the first quarter ended March 31, 2022. While the results may not be what investors want to hear, there’s positive momentum ahead.
CEO Jacques Tortoroli explained that while the company’s traffic with respect to eCommerce was lower than in prior periods, subscriptions have seen incredible increases since Q1 2021. Experiencing an eCommerce revenue decline of $3.0 million year over year, rebuilding traffic remains a pillar for the firm to maintain adequate eCommerce, especially as it is its largest revenue channel.
“In our retail business, shipping was disrupted in January due to a two-week closure after a local wildfire in Boulder County. Despite the slow start, the overall business improved throughout the quarter, with March being the largest revenue month of the quarter. The quarter did not benefit from our new retail sales organization, which was put in place in April,” the CEO added.
Progress continued to be a reality in key international markets. For example, in the United Kingdom, Charlotte’s Web was able to achieve a milestone by being one of the first companies to receive validation of its novel food applications from the UK Food Standards Agency (FSA). As if this were not enough, the company is added to the FSA’s list of products allowed to be sold in the UK.
For the three-month period ended last March 31, consolidated net revenues were $19.4 million, a decrease of 17.3% versus $23.4 million in the first quarter of 2021. The company explained that this downward movement was largely due to the temporary closure of the company’s production and shipping terminal in January following a local wildfire in Boulder County.