Multi-state cannabis operator Curaleaf this week reported fourth-quarter and full-year 2024 earnings, marked by flat growth year-over-year.
The company reported net revenue totaling $1.34 billion, with 73% growth in international sales offsetting a slight decline in the domestic business.
During his company’s earnings call Tuesday, CEO Boris Jordan said he’s expecting no change in the medical cannabis program in Germany despite potential changes in the government. But he said the timetable for recreational cannabis in the country could slow down substantially.
“From our perspective that’s actually a positive. We’d prefer the medical program as it stands now,” he said.
Competition in Europe is rising, Jordan said, citing a tremendous amount of cannabis flower being shipped into the region from Canada, which is creating price competition. But Curaleaf said that it’s still managed to expand margins since its product offerings are near the upper end and, as it scales, the company is better equipped to handle the fixed costs.
In the U.S., Curaleaf, like several other major MSOs, has begun making measured investments in hemp-derived THC products. Jordan admitted there’s still significant risk involved with that market since the Farm Bill, which allows for the sale of hemp with less than 0.3% THC, was only extended by one year.
“We’re taking a cautiously optimistic view right now,” he said. “The good piece of news is that, at the moment, I think the beverage side of the hemp bill looks as though it will likely be OK, largely because there’s a tremendous amount of players and there’s a lot of vested interest and lobbying on that side of it.”
However, Jordan anticipated there will be some rollback for other hemp-derived THC product categories like vapes, primarily due to the use of synthetic cannabinoids. He promised that Curaleaf is only using naturally derived hemp THC in its beverages, which will soon include Formula X, a THC-infused energy drink.
👀 As I mentioned on our earnings call, our latest innovation in the hemp THC space, FormulaX, is already rolling off the production line. This launch will introduce a brand new category to the hemp beverage space. Stay tuned! $CURA $CURLF pic.twitter.com/l3V8yTkK0x
— Boris Jordan (@Boris_Jordan) March 4, 2025
