Charlotte’s Web Holdings is the leader in hemp and cannabidiol (CBD) solutions and the company’s latest earnings information shows why. It just released its fourth-quarter and full-year 2020 financial results, presenting significant growth in both segments. As 2021 continues to be seen as the year of substantial cannabis reform in the US, Charlotte’s Web is establishing itself to see even more growth and stronger results.
In 2019, Charlotte’s Web saw net revenue of $94.6 million, which improved to $95.2 million last year. Direct-to-Consumer eCommerce sales saw the biggest increase in growth, adding 27.6% to its previous figure. That represented 67% of the company’s total revenue, which had been hampered by the COVID-19 pandemic. B2B sales dropped because of nationwide restrictions, falling 29.5% from their 2019 levels.
As a result of the performance, Charlotte’s Web had $52.8 million in cash and $113.6 million in working capital as of December 31, 2020. Those figures should increase this year, driven by several key acquisitions and partnerships concluded last year. The company completed its acquisition of Abacus Health, giving it a leading position for CBD topicals, and also increased its distribution from 10,000 retail shops to over 22,000. The addition of a B Corp certification and investment into an expanded capacity for production, extraction, R&D and distribution will also support more growth in 2021.
Deanie Elsner, Charlotte’s Web CEO, said of the company’s performance, “We turned a challenging start to 2020 into a strong finish, taking multiple actions and outperforming much of the competitive set to extend our brand and market share leadership. We filled product and channel gaps with competitive offerings and advanced the science of hemp CBD through CW Labs and collaborative studies with top-tier institutions. We have now protected our intellectual property with 5 patents awarded for our proprietary cultivars and have defended our trademarked Charlotte’s Web brand through a recent judgment. In 2021, we are positioning for long-term growth and shareholder value creation as we evolve towards establishing Charlotte’s Web as a leading global botanicals wellness company by expanding into cannabis wellness where federally permissible. To support our international growth, we have an exclusive agreement with one of Israel’s largest medical cannabis producers, and in the U.S. we secured future optionality through a strategic option to acquire Stanley Brothers cannabis business pending US federal legalization of cannabis.”