Last week, we saw a flurry of earnings from cannabis players. Charlotte’s Web Holdings (CWEB) (CWBHF) released its preliminary first-quarter results on May 8. It expects to post revenues of $21 million–$22 million in the first quarter. The company posted revenues of $21.5 million in the fourth quarter and $13.5 million in the first quarter of 2018. Charlotte’s Web Holdings expects to post adjusted EBITDA of $4.0 million–$4.5 million in the first quarter. The stock plunged after releasing its first-quarter preliminary results.
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Village Farms International (VFF) released its earnings on May 9 after the markets closed. It reported revenues of $31.9 million in the first quarter as compared to $29.5 million in the first quarter of 2018. The company’s first-quarter revenues after accounting for its proportionate share in Pure Sunfarms was $37.3 million. Emerald Health Therapeutics (EMH) is the joint venture partner in Pure Sunfarms.
Pure Sunfarms “reported positive net income (before Village Farms’ 50% share) for the first quarter of 2019 of $8.6 million.” Pure Sunfarms has reported positive net income for two consecutive months. Most other cannabis players are currently posting losses. However, investors have still flocked to the sector amid high revenue growth. Village Farms spiked 14.5% on May 10 as markets gave a thumbs up to its earnings.
Greenlane Holdings (GNLN) reported its first-quarter earnings on May 9. It reported revenues of $49.9 million as compared to $43.2 million in the first quarter of 2018. It generated a net loss of $17.6 million in the quarter as compared to a net profit of $2.3 million in Q1 2018. Greenlane Holdings had its IPO last month and had risen more than a quarter on its listing day. However, it has seen a selling spree since then and despite last week’s gains, the stock is trading below its listing price.