Q2 2024 Curaleaf Holdings Inc Earnings Call Transcript
Key Points
- Curaleaf Holdings Inc (CURLF) reported a 2% year-over-year increase in second-quarter revenue, reaching $342 million.
- The company achieved a significant improvement in gross margins, exiting June with a 50% gross margin and continuing this trend into July.
- Curaleaf's international segment experienced robust growth, with a 78% year-over-year increase, driven by markets such as the UK, Germany, and Poland.
- The company successfully launched its hemp-derived THC products, expanding its market reach to 25 states through direct-to-consumer channels and partnerships like DoorDash.
- Curaleaf Holdings Inc (CURLF) maintained a strong cash position with $89 million in cash and generated $30 million in operating cash flow from continuing operations in the second quarter.
- The company faced continued price compression in key markets such as Arizona and Florida, impacting overall margins.
- Curaleaf's retail revenue declined by 4% year-over-year, reflecting a shift from retail to wholesale and increased competition.
- The company incurred significant start-up costs and integration expenses related to its new hemp business and the Northern Green acquisition, affecting short-term margins.
- Despite the positive growth in international markets, Curaleaf acknowledged bottlenecks in supply chains and regulatory challenges, particularly in Germany.
- The company anticipates continued macroeconomic pressures on consumers, including high inflation and interest rates, which could impact disposable income and spending on cannabis products.
Good afternoon, everyone, and welcome to Curaleaf's second quarter 2024 conference call today, and apologies for those technical difficulties at the start. Today, I am joined by Executive Chairman, Boris Jordan; Chief Executive Officer, Matt Darin; and Chief Financial Officer, Ed Kremer.
Before we begin, I'd like to remind everyone that the comments on today's call will include forward-looking statements within the meaning of the Canadian and US securities laws, which by their nature involve estimates, projections, plans, goals, forecasts and assumptions, including the successful integration of acquisitions and are subject to risks and uncertainties that could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements on certain material factors or assumptions that were applied in drawing the conclusion or making a forecast in such statements.
These forward-looking statements speak only as of the date of this conference call and should not be relied upon as predictions of
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