The next couple of weeks are going to see a number of cannabis company’s report their quarterly, and in some cases, annual financial results. Curaleaf (CNSX: CURA) announced their Q4 financial results today, overall impressing the markets with $32 million in revenues, alongside another impressive announcement during their earnings conference call where they revealed a partnership with CVS Health Corp.
This second announcement would see Curaleaf’s products displayed in over 800 retail drug stores across 10 US states, and is a major retail victory as cannabis companies become increasingly focused on vertical integration and retail presences.
In regards to the financial reports, the revenue figures represent a 209 percent year-over-year growth in revenue, alongside a 43 percent growth in comparison to the previous quarter. Total revenue for the cannabis company reached $77.1 million throughout the entire year, with $32 million (or around half) coming from the most recent quarter.
“2018 was a landmark year for Curaleaf. We successfully completed the largest ever U.S. cannabis RTO, experienced substantial growth, and have firmly set the foundation to capitalize on the shift in public sentiment toward cannabis in the U.S. and capture key expansion opportunities in 2019,” said Curaleaf CEO Joseph Lusardi. “Curaleaf has become the most accessible national cannabis brand with the largest operational branded dispensary footprint in the country and the recent launch of our CBD line under Curaleaf Hemp. We’ve done this through our strategic presence in highly populated, limited license states, which has served as an important foundation for our aggressive expansion plan across the country. We continue to focus on providing the highest quality products and services for our customers.”
Other highlights for the company include expanding to operate in 12 states and expanding their portfolio to include 36 dispensaries, 12 cultivation plants, and 10 processing labs. The company also has an impressive $266.66 million in cash on hand, an impressive figure in comparison to the total revenues reported by the company.
“Curaleaf’s rapidly growing footprint is a direct result of our strong capital position, scaled operations and ability to strategically acquire assets that augment our existing platform,” added the company’s CFO Neild Davidson. “We remain focused on our path to profitability and positive cash flow, while maintaining a prudent use of capital to pursue acquisitions and organic growth initiatives that position us as a leader in the industry for the long term.”
At the same time, the company added on late Wednesday that they were partnering with a major drugstore chain, CVS Health Corp. The agreement, announced during the company’s earnings conference call, went on to say that CVS would carry Curaleaf’s lotions and transdermal patches in 800 stores across 10 states. This announcement follows another big win for the company when it announced that they were expanding into the Nevada market with a $70 million investment. Acquiring the state’s largest cultivator, Acres Cannabis, Curaleaf will be added a 400,000 square foot facility into their portfolio in the state after it’s fully operational.
In response to today’s news, shares of Curaleaf jumped up a further 3.3 percent, adding to yesterday’s modest gains of around the same amount.