Charlotte’s Web Holdings, the market leader in hemp extract-based wellness products, released financial results for the fourth quarter and full-year ended December 31, 2021. With these numbers now known, it is very likely that many investors will now have the company on their shortlist.
As it is relevant to recall, earlier this year, Charlotte’s Web became a registered entity of the U.S. Securities and Exchange Commission (SEC), thus subject to the country’s reporting requirements. According to the report shared by the company, for the 12-month period ended December 31, net income increased 1% to $96.1 million. Market analysts noted that unit sales volumes were significantly offset by an industry-wide consumer shift to lower-priced CBD products.
Direct-to-consumer (DTC) eCommerce revenues fell by 2.3% year over year to $62.3 million, while business-to-business (B2B) revenues increased by 7.5% to $33.8 million. For 2021 operations overall, gross profit was reported at $48.6 million, or 50.6% of consolidated revenues. Gross profit, excluding inventory provisions, was $58.3 million, or 60.7% of consolidated revenues. Adjusted EBITDA improved by $5.0 million compared to 2020, resulting in a lower adjusted EBITDA loss of $18.6 million.
Charlotte’s Web CEO Jacques Tortoroli said, “We have substantially completed our multi-year investment in our production capacity to effectively service a sophisticated mass retail channel when federal regulations are set for the CBD wellness category in the U.S. In the interim, regardless of regulatory actions, we are focused on developing sustainable revenue growth with our current customers and through new customer acquisitions, and new channels, as well as selective innovation in new products, and international market expansion.”
For its part, the edibles market remains a strength for the company. Gummies and topicals accounted for 31% and 19% of the company’s gross sales in 2021, respectively, up from 22% and 14% in 2020. Charlotte’s Web continues to be considered one of the companies that continues to support federal and state legislative moves further to promote a CBD regulatory framework in the country.