REshuffling the deck chairs
There was nothing to get excited about in the CURLF earings print and a few red flags. CURLF's strategy of "going wide early" has not been a strategy in the cannabis space that has been proven successful. Could CURLF be the USA's version of Canopy Growth (CGC)?
CURLF reports 1Q22 adjusted EBITDA of $72.9M, missing FactSet's $75.6M with revenue below consensus. Commentary included, "Saw strong month-over-month growth beginning in March and heading into the second quarter, boosting confidence in our ability to hit full-year revenue guidance of $1.4 billion - $1.5 billion." Also, commentary on the launch last month of New Jersey adult-use sales, and the prospect of New York following suit, help to support 2022. But!
Time will tell if CURLF has bought the right assets and at the same time invested in those assets to build a globally dominant cannabis company. That is a difficult task for any company but made even more complicated when there is high turnover in the c-suite. In conjunction with earnings, the company announced that Matt Darin had been named as the new CEO of Curaleaf Holdings. The company also announced that current CEO Joe Bayern had been picked to run a new division of Curaleaf developing a new CPG-based business model (no further detail were given). Darin joined Curaleaf in July 2020 and was named president in Jan. 2022.
With Boris Jordan, Executive Chairman, reshuffling the deck chairs, what does he have for Curaleaf Holdings, Inc? The announcement of a new CPG business model suggests that a restructuring of the assets is coming in July.
Illinois Sales Tracker
Illinois adult-use cannabis sales remained steady in April. Sales of $131.8 million rose 0.6% from March. YoY growth fell from 20% in March to 14.6% in April.
CANNABIS Q&A CALL
We are hosting our monthly Q&A and Cannabis State Sales Update Call tomorrow, 5/11, at 12:30 PM ET. We will answer questions regarding our position monitor (see below), our process, updates on SAFE BANKING, as well as give an update on our state-by-state cannabis sales tracker. Please feel free to submit your questions in advance to . CLICK HERE for access to this event, and CLICK HERE for a calendar invite.
