Curaleaf Reports Fourth Quarter and Fiscal Year End 2021 Results

Record fiscal year 2021 revenue and Adjusted EBITDA⁽¹⁾ of $1.2 billion and $298 million, representing an increase of 93% and 107%, respectively

– Fourth quarter 2021 Revenue and Adjusted EBITDA of $320 million and $80 million, representing an increase of 39% and 48% year-over-year, respectively

March 3, 2022 — Curaleaf Holdings, Inc. (CSE: CURA) (OTCQX: CURLF) (“Curaleaf” or the “Company”), a leading international provider of consumer products in cannabis, today reported its financial and operating results for the fourth quarter and year ended December 31, 2021. All financial information is provided in U.S. dollars unless otherwise indicated.

Fourth Quarter and FY 2021 Financial Highlights (Unaudited)
($ thousands, except per share amounts)	Q4 2021	Q4 2020 (As Restated)	% yoy Change	FY 2021	FY 2020 (As Restated)	% yoy Change
Total Revenue	$320,011	$230,253	39%	$1,209,661	$626,637	93%
Gross profit before impact of biological assets	159,437	110,595	44%	588,051	315,489	86%
Gross profit on cannabis sales⁽¹⁾⁽²⁾	158,809	109,625	45%	585,734	275,071	113%
Gross margin on cannabis sales⁽¹⁾⁽²⁾	49.7%	47.8%		48.5%	46.9%
Adjusted EBITDA⁽¹⁾⁽²⁾	79,675	53,784	48%	298,037	144,080	107%
Net loss attributable to Curaleaf Holdings Inc.	(27,543)	(37,067)		(101,731)	(57,161)
Net loss per share – basic and diluted	($0.04)	($0.06)		($0.15)	($0.10)

Boris Jordan, Executive Chairman of Curaleaf, commented, “2021 was another exceptional year for Curaleaf. We reached a significant milestone by generating over 90% revenue growth and exceeding $1.2 billion of total revenue for the first time. We continued to deliver gross and Adjusted EBITDA margin expansion and ended the year with one of the strongest balance sheets in the industry to support our ongoing growth strategies. In addition, we announced strategic acquisitions that have strengthened our ability to continue gaining share in key U.S. markets as well as internationally. Looking to 2022, we remain focused on executing our plan for strong, above market revenue growth and margin accretion, and believe we are incredibly well positioned to benefit from significant near-term catalysts such as the anticipated launch of New Jersey’s adult use market.”

Joe Bayern, Chief Executive Officer of Curaleaf, stated, “In 2021, we made significant progress strengthening all areas of our business including growing our retail and wholesale distribution, introducing new products, expanding our cultivation and production capacity, and entering new markets such as Europe. I believe our focus and strong execution in 2021 set us up extraordinarily well for the significant growth opportunities that lie ahead in 2022 and beyond. I am incredibly proud of the hard work and dedication of all our team members who have made our continued success possible. I believe Curaleaf is better positioned than ever to capitalize on the massive and growing cannabis opportunity.”

Fourth Quarter 2021 Operating Highlights

Added eight new retail dispensaries including five in Florida, two in Colorado, and one in Arizona.
Entered into a definitive agreement to acquire Tryke Companies, a vertically integrated MSO in Nevada, Arizona, and Utah.
Entered into a definitive agreement to acquire Natural Remedy Patient Center, LLC, a Safford, Arizona dispensary.
Entered into a definitive agreement to acquire Bloom Dispensaries, a single state operator in Arizona.
Completed the offering of $475 million aggregate principal amount of 8.0% Senior Secured Notes due 2026 and retired all prior indebtedness, increasing liquidity and materially reducing the average interest rate on the Company’s outstanding debt.
Signed a national distribution agreement with Southern Glazer’s Wine & Spirits to bring Curaleaf’s Hemp and Select CBD product lines into Southern Glazer’s distribution network.

Full Year 2021 Operating Highlights

Significantly expanded retail, wholesale, and cultivation operations through organic growth and strategic acquisitions.
- Increased retail locations from 96 to 117 as of December 31, 2021.
- Reached approximately 2,300 active wholesale accounts as of December 31, 2021, an increase of over 90% from year end 2020.
- Grew cultivation sites from 23 to 25.
- Expanded total cultivation and production capacity by over 2.5 million square feet to approximately 4.4 million square feet.
Significant focus on R&D activities drove the introduction of 147 new products in our markets, with approximately 11% of full year 2021 revenue generated by new products launched in the last 12 months.
Entered the European market through the successful acquisition of EMMAC Life Sciences Group and subsequently rebranded to Curaleaf International.
Completed the acquisition of Los Sueños Farms, the largest outdoor grow in Colorado.