cbdMD Net Sales Increase 77% Year-Over-Year, Direct E-Commerce Sales Jump To $30.5M
The Charlotte, North Carolina-based company reported direct-to-consumer e-commerce net sales of $30.5 million for the year, accounting for 73% of total net sales. That's a 106% increase over fiscal 2019.
Martin Sumichrast, the company's chairman and co-CEO, said it's built two CBD brands, including cbdMD and Paw CBD, in two years with "less cash than we have in the bank today.
"We believe cbdMD is now one of the most successful CBD companies in the world," he said in a statement.
cbdMD Earnings Breakdown
Here's what the company's earnings report for the fourth quarter and full-year showed:
- For the quarter, the company achieved a new high of $11.7 million in net sales, compared to $9.5 million in the same period last year
- The gross profit margin for the same period dropped from 57% in 2019 to to 54%.
- The loss from operations in the last three months of 2020 was roughly $4.5 million versus $5.2 million in the corresponding quarter of last year
- Fourth-quarter fiscal 2020 e-commerce, direct to consumer net sales amounted to $8.6 million, up by 58% year-over-year.
- In fiscal 2020, the gross profit margin rose to 63%, up from 61% in fiscal 2019.
- The loss from operations amounted to $17.6 million for the year, in comparison to $14.8 million in the last year.
As of Sept. 30, cbdMD had around $16 million in working capital and approximately $14.8 million in cash.
The company expects to achieve positive adjusted operating income, a non-GAAP financial measure, in early fiscal 2021, Sumichrast said.
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