Charlotte’s Web Holdings (TSX:CWEB) (OTCQX:CWBHF) released its quarterly results on Thursday, but the stock ended the day at the level at which it had started. It came as a surprising turn of events considering the fact that many cannabis stocks and the wider market recorded gains yesterday.
The company, which is primarily focussed on the CBD space, posted revenues of $21.5 million in the fiscal first quarter. It was a disappointing performance for the company since it reflected a year on year decline from the $21.7 million it posted in Q1 2019. The revenues declined sequentially as well.
On the other hand, it should also be mentioned that analysts had projected revenues of $20.8 million for the quarter, and the CBD specialist actually managed to beat it. However, CWH managed to reduce its losses to $11.5 million for the quarter from $18.8 million in the previous quarter.
That being said, it is a far cry from the $2.5 million profit that the company had posted in the prior-year period. The net loss per share came in at $0.11 per share, which was worse than analysts’ expectations of $0.06 per share net loss in the quarter.
The better than expected performance on the revenues front came as a pleasant surprise, and CWH credited it’s online direct to consumer platform for it. More importantly, CWH also stated in its press release yesterday that is expected that sales, through its direct to consumer platform, are going to rise further in the first half of this year.
On year on year basis, sales through online channels grew by as much as 30%, and the company would hope that it continues to grow over the coming quarters. Another important factor in CHW’s immediate future is its acquisition of CBD peer Abacus Health. The deal is worth $70 million, and it is believed it is going to be completed either in this quarter or the next one.