Charlotte’s Web Holdings, Inc., (TSX: CWEB) (OTCQX: CWBHF), producer of full-spectrum hemp extract wellness products, reported its financial results on Monday for the third quarter ended September 30, 2022.
Q3-2022 Financial Review
For the three-month period ended September 30, 2022, net revenue was $17.0 million, a decrease of 28.1% versus $23.7 million in Q3-2021. Direct-to-consumer e-commerce net revenue was $11.8 million, a decrease of $3.4 million or 22.5% due to lower year-over-year traffic. Adjusted EBITDA for the third quarter of 2022 was positive $0.6 million, an improvement of $5.5 million as compared to Adjusted EBITDA of negative $4.8 million in Q3-2021.
Business-to-business net revenue was $5.3 million, a decrease of $3.3 million, or 38.1%, lower year-over-year primarily due to lower comparable shipments to some of the company’s largest retail customers. Several new distributors were added during the quarter as a result of a strategic transition from direct sales to a distributor model, however, these take time to develop and did not materially impact sales in the quarter.
Gross profit was $8.9 million, or 52.5% of …