Hemp Today reports
The fortunes of leading U.S. CBD company Charlotte’s Web continued a downward trend in the first quarter of 2024 as the company recorded $9.7 million in losses on reduced revenues of $12.1 million – more than tripling losses recorded in the same period last year.
“The first quarter of 2024 started slowly in terms of sales volume,” CEO Bill Morachnick said in a statement, noting the company is working on “turnaround initiatives.” Those efforts include halting paid media promotion, redesigning the company’s business-to-business division “to better serve retailers within the current regulatory environment,” and putting more attention on opportunities in medical CBD.
Cutting costs
“Given our current revenue challenges, we continue to act with agility to further optimize cost structures across the company, streamline operations, and eliminate inefficiencies,” CFO Jessica Saxton said in the company’s Q2 statement. She was replaced last Friday by Erika Lind, who moved up from her position as Vice President of Financial Planning and Analysis.
The company said it is also about to relaunch online assets because its “legacy e-commerce platform limits our ability to be agile in executing marketing strategies and promotions quickly.” Charlotte’s Web was accused in April of violating the California Invasion of Privacy Act by eavesdropping on visitors to its website.
Losses on top of losses
The Louisville, Colorado-based company lost $2.9 million on revenues of $17 million in the analog quarter of 2023, a year in which it eventually suffered losses totalling $23.7 million, after shedding $59.3 million the year previous. Revenue last year fell by 14.8% to $63.2 million from $74.1 million in 2022.
Read the full article https://hemptoday.net/struggles-continued-for-charlottes-web-in-first-quarter-as-losing-streak-continued/?utm_medium=email&_hsmi=90689802&utm_content=90689802&utm_source=hs_email
