, a leading international provider of consumer products in cannabis, today reported its financial and operating results for the third quarter ended September 30, 2021.
A webcast of the call can be accessed on the investor relations section of the Curaleaf website at ir.curaleaf.com The teleconference will be available for replay starting at approximately 7:00 P.M.
As a result, we remain on track to achieve our $1.2 to $1.3 billion annual revenue guidance, albeit at the lower end of the range, representing growth of over 90%.
Strategic M&A remains a key pillar our growth plan.
Joe Bayern, Chief Executive Officer of Curaleaf stated, “We continued to successfully execute our plan for long-term growth in the third quarter with a focus on our four pillars of competitive advantage – research & development, commercialization, national distribution, and marketing and brand building.
During the third quarter the Company opened two new dispensaries including one in Bordentown, New Jersey and one in Wells, Maine, reaching 109 dispensaries as of quarter end.
Wholesale revenue grew 3% sequentially and 105% year-over-year to $92 million and represented 29% of total revenue.
The change in gross margin primarily reflects a one-time loss on inventory related to the Eureka, California facility divestiture, lower revenue growth in certain Northeast markets, and the write down of certain other inventory in the third quarter of 2021, partially offset by ongoing cultivation and process efficiencies.
Higher operating income by $24 million was offset primarily by $42 million of higher tax expense, $25 million of higher other expense, and $8 million of higher interest expense compared with the third quarter of 2020.
Adjusted EBITDA margin was 22.5%, compared with 27.0% in the prior quarter and 23.2% in the third quarter of 2020, with the change primarily reflecting lower gross margin and higher SG&A expense related to increased headcount in support of new store openings, higher travel costs, and marketing in support of new product rollouts.
We believe the adjusted results presented provide relevant and useful information for investors because they clarify our actual operating performance, make it easier to compare our results with those of other companies and allow investors to review performance in the same way as our management.
Curaleaf International is the largest vertically integrated cannabis company in Europe with a unique supply and distribution network throughout the European market, bringing together pioneering science and research with cutting-edge cultivation, extraction and production.