Charlotte’s Web Holdings just provided an update on its financial health, and things are looking good.
Reporting on the results from the cannabis company’s third quarter, Charlotte’s Web saw an increase in sales of its CBD (cannabidiol) products that should continue well into 2021. Compared to the company’s performance in the second quarter, it is seeing substantial positive momentum that will allow it to continue to serve as the market share leader in full-spectrum CBD hemp extract products.
In terms of quarter-over-quarter performance, Charlotte’s Web enjoyed a 17% jump in CBD product sales as it took in $25.2 million from the segment. Direct-to-Consumer eCommerce sales jumped 27.5% year-over-year, providing 66.3% of the company’s third-quarter revenue. Overall, consolidated revenue came in at $25.2 million, a year-on-year increase of 0.4% and a quarter-over-quarter increase of 17%.
Deanie Elsner, the company’s CEO, said of the results, “The strength of our leading ecommerce sales continued to offset slower B2B retail sales during the pandemic. Within our B2B business, we are seeing signs of improvement with a return to consecutive quarterly revenue growth of +36%, led by the natural channel +20%, and the health care practitioner channel +101% quarter-over-quarter.”
During the period, Charlotte’s Web also expanded its retail operations, adding almost 1,000 new locations where its products are found. This increase will prove advantageous as the sentiment toward CBD products continues to become more favorable in the US and abroad.
While there was a lot of positive information distributed with the results, Charlotte’s Web is working to control operating expenses. These increased as a result of the COVID-19 pandemic, and the company is currently working to “better align” the expenses and has “initiative an expense optimization program” to reduce costs by more than 10% before the end of the year.
It now has $65.9 million in cash and $128.6 million in working capital, as of the end of the quarter, compared to $68.6 million and 116.9 million, respectively, as of the end of last year.