CBD Maker Charlotte's Web Posts 75% Gross Margins In Q2
Charlotte’s Web Holdings, Inc. (OTC: CWBHF) reported 45% year-over-year second-quarter revenue growth Wednesday.
Gross margins for the quarter were 75.3%, with $18.8 million in gross profits.
The whole-plant CBD brand named several business highlights in the report, including Charlotte's Web products appearing in 1,926 additional retail locations as well as numerous new SKUs for gummies and its pets line.
"Top tier mass retailers are entering the market as several national grocery and drugstore brands have announced their CBD plans. The majority of these are now carrying Charlotte's Web products," CEO Deanie Elsner said in a statement.
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The company debuted on the Toronto Stock Exchange during the quarter and increased its hemp acreage to 862 acres.
Operating expenses jumped 98% quarter-over-quarter to $16.2 million. Charlotte's Web attributed the increase to a 41.6% rise in its employee headcount.
Elsner discussed the company’s growth plans in a statement.
“To effectively service projected growth, we have been building our executive leadership with experienced consumer packaged goods executives in sales, marketing, finance, data and operations. Similarly, we are expanding our capabilities in cultivation, R&D, production and distribution.”
- Adjusted EBITDA of $3.9 million
- Net income of $2.2 million
- 53% of revenue generated via retail outlets
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