Charlotte’s Web grows market position, even as B-to-B sales flag in Q1
Charlotte’s Web’s first quarter saw the CBD giant grow its market share in the United States as its overall revenue grew by more than 9%. The Boulder, Colo.-based company reported $23.4 million in consolidated revenue for the quarter ended March 31 — a 9.1% year-over-year increase.
Even with a 1.4% decrease in its business-to-business revenue, Charlotte’s Web said that it still managed to increase its No. 1 share position in food, drug and mass channels as well as in the natural specialty retail channel. The company’s direct-to-consumer e-commerce sales grew by 14.5% compared with the prior-year period, contributing about 69% of revenues for the quarter. Gross profit came out to $13.7 million, roughly 58.4% of consolidated revenue.
"Despite reduced retail activity due to the pandemic, our directly comparable B2B retail sales showed year-over-year growth,” said Charlotte’s Web CEO Deanie Elsner. “Our B-to-B retail sales and velocities further strengthened in March and April as US vaccination programs support reopening of the economy, and our DTC sales continued to grow demonstrating long-term secular strength for our products in the e-commerce channel,
Other highlights from the quarter include getting three proprietary hemp cultivars approved for cultivation in Canada in 2021, as well as a $1.6 million investment to complete the third phase of its 137,000-sq.-ft. facility. The company also launched its first THC-free broad-sprectrum extract tinctures and topicals.
“Internationally we have made our first moves into Israel and Canada with initial product sales planned for early 2022,” Elsner said. “We are pleased with our progress and believe that Charlotte's Web is well positioned to drive continued growth in the U.S. and new growth in key international markets as we expand outside of the U.S."
