Rocky89/E+ via Getty Images
Charlotte’s Web (OTCQX:CWBHF) stock tumbled 12% after the firm posted wider loss and lower revenue in Q4.
Net loss was $118.2M for Q4 vs. $12.2M in Q4 2020, due to lower gross profit and lower revenue.
Q4 revenue fell 7.8% Y/Y to $24.8M due to sales and channel mixes and competitive DTC pricing.
DTC revenue in Q4 fell 12.1% Y/Y due to product mix and lower-than-expected online sales during the Dec. holiday season. DTC accounted for 62% of total revenue in Q4.
Q4 B2B revenue was flat Y/Y at $9.5M on higher unit sales volume of new pet, topicals, and gummy products, which carry lower avg. unit pricing. B2B contributed 38% of revenue in Q4.
2021 net revenue grew 1% to $96.1M. Growth from higher unit sales volumes was offset by an industry-wide consumer shift to cheaper CBD products; primarily gummies and topical products.
CWBHF’s cash and cash equivalents at Dec. 31 stood at $19.5M vs. $52.8M at Dec. 31, 2020. This does not reflect an outstanding IRS tax refund of $10.8M, which may be partially or fully collected in 2022.
CWBHF maintains an unused $10M credit line with JPMorgan that was put on hold due to the company failing to meet required covenants in Q4 that were not waived.
Recent Comments