: Curaleaf earnings show legal U.S. weed sales flattening out as prices decline

by | Nov 7, 2022 | Stock Market

U.S. cannabis producer Curaleaf Holdings Inc. on Monday reported a bigger loss than expected during its third quarter, amid what it said were “unexpected revenue impacts” in Florida and New Jersey. Curaleaf
reported a net loss of $54.7 million, or 7 cents a share, compared with a loss of $56.9 million in the same quarter last year, or 8 cents a share. Sales came in at $340 million, compared with $317 million in the prior-year quarter; sales grew just 1% from the previous quarter.

Analysts polled by FactSet expected a loss of 3 cents a share on revenue of $337 million. Shares closed 3.4% lower on Monday. Curaleaf — one of the largest U.S. cannabis producers, with dozens of dispensaries and some degree of operations in 22 states — has opened new stores in states like Arizona, Florida and Pennsylvania in recent weeks. But the legal U.S. cannabis industry has faced a drop in weed prices, as legal producers grow aggressively and as the illicit market maintains its hold on cheaper product, while consumers appear to be rethinking their shopping habits in a universe of rising prices for basics like groceries and gasoline. Ben Kovler, CEO of Curaleaf rival Green Thumb Industries Inc.
citing data from BDSA, recently told MarketWatch that U.S. cannabis sales were up 3%, while unit sales had jumped 22%. The gap between revenue and the amount of goods sold — which indicate lower prices — has made it more diffi …

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