Charlotte’s Web Holdings Inc (CSE:CWEB, OTCQ: CWBHF), the maker of hemp-derived CBD extract products, saw its revenue nearly double in the fourth quarter as it reaped the benefits of the legalization of hemp in the US.
Thanks to booming e-commerce sales of CBD products, its revenue for the fourth quarter rose to $21.5 million, compared to $12.6 million for the same period last year. The company’s net income also jumped to $3.2 million, or $0.03 per share, over the same time frame from $2.4 million, or $0.03 per share, in the year-ago quarter.
The results, however, failed to meet the estimates of analysts who predicted the Colorado company would earn $0.06 on revenue of $23.09 million.
In the wake of the passage of the US Farm bill, which gave the green light to the production of commercial hemp, the Boulder-based company reported that its 2018 harvest produced 675,000 pounds of raw hemp compared to 63,000 pounds in 2017.
"We believe this important legislation will have a positive impact on consumer access to hemp-derived CBD products and for our valuable farming communities throughout the country," said Hess Moallem, CEO of Charlotte’s Web, in a statement.
The company says more than 4,000 retailers now carry its line of hemp wellness products.
Charlotte’s Web shares slipped $0.27 to hit $19.93 in afternoon trade Friday.
Contact Ellen Kelleher at [email protected]