Curaleaf Up 6% In 2023, With Sales Reaching $1.35 Billion
March 12, 2024Multistate player Curaleaf reached a new sales record last year, rising 6% to $1.35 billion after a strong fourth quarter. Annual adjusted EBITDA totaled $304 million, down slightly from a year earlier, despite a 10% sequential bump in the final three months of the year. Overall, Curaleaf’s yearly net loss was trimmed to $290 million, compared with $377 million in 2022, with the company citing improving margins. At more than $3 billion, Curaleaf has a market cap among the biggest in the business.
“Our gross margin trajectory is improving faster than we initially anticipated as we have turned on idle capacity to meet increasing demand, and see our first quarter margins approaching 50%,” noted executive chairman Boris Jordan. “2024 will be Curaleaf’s catalyst year.”
“We have leading market share and growth in key markets like Arizona, Florida, New York, and Pennsylvania; a domestic wholesale business that grew 15% sequentially; and a U.S. retail business that grew 9% for the year, eclipsing the $1 billion mark for the first time,” added CEO Matt Darin.
Among its recent initiatives, Curaleaf opened its 61st store in the Florida market—with plans to continue expanding up to 85 stores—and also entered the New York market with a location in Newburgh, after planting flags in Connecticut and Maryland with the start of adult-use sales in those states. Those moves came as Curaleaf pulled back from unprofitable markets last year—in line with competitors—as it discontinued operations in California, Colorado, Oregon, Michigan, Kentucky, and Maine.
Within the brand portfolio, Curaleaf has seen a strong rollout for Briq, its two-gram vape, which debuted across 11 states over the past year. The company also launched Select Liquid Diamonds in Florida and Zero Proof cannabis-infused beverages in Illinois, and introduced Grassroots diamond-infused pre-rolls in five states.
This year, Curaleaf is targeting mid single-digit sales growth and mid-20% adjusted EBITDA margins as it continues to focus on core markets. The company also announced a move to uplist to the Toronto Stock Exchange to bolster its investor base moving forward.—Daniel Marsteller
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