Clever Leaves Reports Second Quarter 2023 Results.

TOCANCIPA, Colombia: Clever Leaves Holdings Inc. (NASDAQ: CLVR, CLVRW) ("Clever Leaves" or the "Company"), a global medicinal cannabis company, is reporting financial and operating results for the second quarter ended June 30, 2023. All financial information is provided in US dollars unless otherwise indicated.

"In the second quarter, we demonstrated continued execution on our key strategic growth objectives, resulting in strong year-over-year revenue growth, optimized cash management, and expansion into new global markets," said Andres Fajardo, CEO of Clever Leaves. "We drove 21% year-over-year growth in our revenues, driven by 151% growth in the cannabinoid segment as a result of sales traction for our extracts. In our non-cannabinoid business, we maintained our margin performance of this segment on both a sequential and year-over-year basis, despite continued revenue headwinds within the specialty retail channel. With the continued progress in our restructuring and cost reduction initiatives, we drove an approximately 25% year-over-year decrease in operating expenses and significantly improved our Adjusted EBITDA performance with ($2.1) million in second quarter 2023 versus ($3.5) million last year. As we progress into the second half of the year, our efforts remain focused on expanding our commercial momentum within and beyond our international target markets, along with maintaining a refined, efficient operational infrastructure.

"With the restructuring initiatives implemented over the past year, including our wind-down in Portugal, we reduced our cash expenditure run rate and driven increased cost savings in the first half of 2023 resulting in $5.1 million in cash as of the end of the second quarter. Subsequent to the end of the second quarter, we completed the sale of our Portuguese processing assets, adding $2.7 million in cash to our balance sheet. We continue to target selling our remaining Portuguese agricultural assets by the end of this year."

Second Quarter 2023 Summary vs. Same Year-Ago Quarter1

Revenue in the second quarter of 2023 increased 21% to approximately $5.0 million compared to $4.1 million for the same period in 2022. The improvement was driven by an increase in cannabinoid segment revenues of 151% to $1.9 million compared to $0.7 million for the same period in 2022, partially offset by lower revenues in the non-cannabinoid segment. The increase in cannabinoid segment revenues was primarily driven by ongoing sales...