Charlotte’s Web Holdings, Inc. lost $6.6 million in the last financial quarter as operating expenses outstripped rising revenue due to the Covid-19 pandemic, which continues to slow down sales.
The Colorado-based CBD giant reported $23.2 million revenue postings for the first financial quarter that ended on September 30th, a 0.4% growth from the same last year.
During its third-quarter earnings report released last Thursday, the CBD company said its revenue allocation had grown by 17 percent from this year’s second quarter, making a return to consecutive growth.
Charlotte’s Web reported a gross profit of $14.7 million for its third quarter, a down surge from $17.19 million it posted in the same period last year.
Meanwhile, the company’s operational costs for 2020 have shot up to $28.3 million from $19.6 million last year. The company decided to take measures that will see it cut down on operational expenses by 10 percent by the end of the year. It, however, did not disclose how it will achieve this plan.
The CBD giant blamed the slump in sales on the pandemic, which continues to derail retail activities in multiple sectors worldwide. Charlotte’s Web saw a B2B sales of $8.5 million, with direct-consumer sales accounting for $16.7 million in last year’s revenues.
The company said that direct-consumer sales also grew by 27 percent year-over-year as online traffic increased.
CW™ Hemp is a Colorado firm founded and owned by the Stanley family, proud advocates of hemp and CBD products for wellness purposes. The company is the only provider of its popular brand Charlotte’s Web™, one of the world’s leading hemp-derived products.
The company makes its products from its own world-renowned hemp strain cultivated in Colorado.
The CBD company is publicly traded on the Toronto Stocks Exchange as CWEB.