The market leader in full-spectrum hemp extract wellness products, Charlotte’s Web Holdings, last week released its financial results for the fourth quarter and year ended December 31, 2022. Many companies in the sector have been sharing positive results in those periods, and Charlotte’s Web was no exception.
Jacques Tortoroli, CEO of Charlotte’s Web, kicked off the conference by stating that the company consolidated its position as a leading licensed brand during the fourth quarter after achieving NSF certification for professional sports. Major League Baseball (MLB) has trusted the company’s products as an official CBD, and that was a big step into the world of sports.
While there was a challenging sales environment due to ongoing regulatory inaction, Tortoroli says the firm maintained its leading market share position in key metrics. The company was also able to secure new distributor partnerships to expand new retail opportunities in the new industry as it better serves some existing customers.
“We simplified and streamlined our business in 2022, significantly reducing costs by almost $30 million, which helped to lower total cash use in 2022 to $5.3 million from $29.6 million in 2021, more than offsetting lower revenue,” CFO Jessica Saxton said. She added that as a result of these actions and the $56.8 million investment from British American Tobacco (BAT), the company closed its balance with a cash balance of $67 million.
Saxton reaffirms that the company will continue to work hard to be a good steward of capital through prudent cash and expense management. The company expects to continue to have positive results in the new period.