Cannabis products maker Curaleaf Holdings, Inc. (TSE: CURA) has announced the results for the second quarter of 2022 and introduced changes to its senior leadership. On Monday, the stock rose 1.1% on the news of new appointments to the company’s executive leadership team.
A Snapshot of CURA’s Q2 Results
- Revenue: Total revenue rose 8% year-over-year to C$338 million, primarily driven by the opening of new stores and the launch of adult-use in New Jersey during the quarter. Retail revenue grew 13% to C$252 million, while wholesale revenue declined 6% to C$84 million.
- Net loss: The company reported a loss of four cents per share, marginally narrower than the Street’s estimate of five cents but wider than the year-ago loss of one cent per share. A rise in operating expenses and a decline in the value of biological assets resulted in a wider loss in the reported quarter.
- Gross profit: Gross profit rose C$20 million year-over-year to C$175 million, and the gross profit margin increased to 51.9% from 49.6% in the second quarter of last year.
- EBITDA: Adjusted EBITDA jumped 2% to C$86 million, and adjusted EBITDA margin increased to 26%.
Key Executive Changes
The Vancouver-based company has announced appointments to its executive leadership team. The first appointment is of Mitch Hara, who joined Curaleaf as Chief Strategy Officer (CSO) on August 3.
As Curaleaf’s CSO, Hara will lead functions like research and development, international, and mergers and acquisitions. Most recently, he was heading Business Development and M&A at Clever Leaves International (NASDAQ: CLVR).
Further, Camilo Lyon and Ed Kremer will join as Chief Investment Officer (CIO) and Chief Financial Officer (CFO), respectively, on August 8. Kremer has worked at Oliver Peoples, Beats by Dre, and Oakley.
Lyon will join Curaleaf from BTIG, where he was the Managing Director. At the cannabis company, he will oversee Investor Relations and Capital Markets.
Commenting on the appointments, Matt Darin, the CEO of Curaleaf, said, “I firmly believe that the foundation of all successful organizations is leadership and culture, and I am confident that these three hires will ensure Curaleaf’s future as the global leader in product innovation, brands, quality and safety, legislative reform efforts, CSR and of course, talent.”
What Is Curaleaf’s Stock Projection?
Curaleaf’s average price forecast of C$14.85 implies upside potential of over 105%. On TipRanks, CURA stock has a Strong Buy consensus rating based on eight Buys and one Hold.
The Street’s optimism can be seen in Seaport Global analyst Sonny Randhawa’s recent report. Last month, Randhawa initiated coverage on the stock with a Buy rating and a price target of C$11.58 (60.2% upside potential).
Bloggers, too, seem to be positive about CURA stock. TipRanks data shows that financial bloggers are 88% Bullish on the stock, compared to the sector average of 73%.
Is Curaleaf a Good Long-Term Investment?
CURA stock has lost almost 34% so far this year and is trading close to its annual low price of $6.18. This could be a good long-term investment opportunity as the company is diligently working towards becoming profitable. The reorganization and the new senior leadership could position Curaleaf for long-term success.
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