Sales of state-legal cannabis boomed in the March quarter. But they’ll grow even faster this quarter, judging by the guidance of the biggest licensed cannabis company, Curaleaf Holdings. March quarter revenue grew 16% from December’s for the 23-state operator, and it says that the sequential rise in June could exceed 20%.
The federal illegality of cannabis consigns shares of U.S. sellers like Curaleaf to a Canadian listing and the over-the-counter trading here, where the stock (ticker: CURLF) was flat in Tuesday midday trading at $14.40, against a 1% drop in the overall market. American cannabis stocks have tripled over the last year, as investors took note of its heated sales growth and merger activity.
“We’re entering a period of high growth and margin expansion,” Curaleaf Chief Executive Boris Jordan told Barron’s. “We’ve done a lot of heavy lifting over the past four years, and we’re at an inflection point where that’s starting to resonate throughout our business.”
Late Monday, Curaleaf reported that its March quarter revenue grew 170% from the year-ago quarter, to $260 million. That modestly exceeded expectations for around $254 million. The industry has been supply-constrained, so with production capacity coming on line in Arizona, Florida, Massachusetts, and New Jersey, Curaleaf expects growth to accelerate. [Read more at Barron’s]
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