Curaleaf Q1 revenue rises 6% gross margin declines

Overview

• U.S. cannabis producer's Q1 revenue rose 6% yr/yr to $324 mln

• Gross margin declined to 49%, adjusted EBITDA margin fell to 19.6%

• Company completed buyout of German subsidiary Four 20 Pharma and changed auditors

Outlook

• Curaleaf did not provide specific financial guidance for future quarters or the full year

Result Drivers

• INTERNATIONAL GROWTH - International revenue rose 35% yr/yr, driven by expansion in Europe, including the buyout of German subsidiary Four 20 Pharma

• RETAIL FOOTPRINT EXPANSION - Opened new dispensaries in Florida, Maine, and Ohio, increasing total U.S. store count to 164

• PRODUCT LAUNCHES - Introduced Select Briq 2 vape in 12 states and launched ultra-premium Dark Heart flower brand in 11 states

Company press release: ID:nPn9KqmtTa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the pharmaceuticals peer group is "buy"

• Wall Street's median 12-month price target for Curaleaf Holdings Inc is C$5.00, about 12.4% above its May 4 closing price of C$4.45

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