HEMP - Europe Is Turning Cash Flow Positive 'We'll See What Happens In The U.S.' Says Curaleaf's Boris Jordan | Benzinga
On July 1, 2024, Boris Jordan, chairman of Curaleaf Holdings (OTC: CURLF), participated in a fireside chat with Pablo Zuanic, senior analyst to discuss Curaleaf's strategic initiatives in Europe and the hemp derivatives market.
European Market Leadership
Jordan noted that Curaleaf anticipated European market's potential three years ago and strategically capitalized on its growth, especially in Germany.
"Germany is running ahead of our expectations for the first quarter. We are now about 40% above our internal targets for the second quarter. We're on a run rate of between $100 and $120 million for the year,” Jordan stated, predicting substantial growth in the coming quarters.
Jordan noted Curaleaf's strategy to balance supply by maintaining 50% of their product and sourcing the remaining 50% from other suppliers.
This approach helps manage price fluctuations and ensures a diverse product range, from Portugal and Canada.
"Most operators in Germany and Europe, including other wholesalers, operate at single-digit gross margins. Curaleaf, however, achieves close to a 40% gross margin due to our vertical integration, full supply chain control, and strong ground-level relationships," Jordan said.
Four 20 Pharma And NGC Integration
In 2022, Curaleaf acquired a 55% stake in Four 20 Pharma GmbH, a fully EU-GMP & GDP licensed German producer and distributor of medical cannabis. Curaleaf plans to develop the remaining shares by the end of next year.
Jordan praised the entrepreneurial skills of Four 20 Pharma's founders and the synergy between the companies.
The acquisition of NGC ...