Charlotte-based CBD company cbdMD YCBD reported its second-quarter fiscal 2023 results late Monday, revealing an improved net loss and significant reductions in selling, general and administrative (SG&A) costs.
"This is one of the best operating results we have had since the company acquired the cbdMD brand…We reduced SG&A expenses by an annualized $24 million year over year," said Ronan Kennedy, cbdMD's Interim CEO and CFO in a press release.
The decrease in SG&A costs represents an annualized spending reduction of $24 million yearly. In addition, the company reported a net loss of $1.4 million on sales of $6.2 million for the quarter, compared to a net loss of $5.0 million on sales of $9.6 million in the same period last year.
Financial Highlights from Q2 Fiscal 2023:
- Net sales for Q2 2023 were $6.2 million, a 2.5% increase from the previous quarter.
- However, net sales for Q2 2023 were down 35% compared to Q2 2022.
- Net sales for the first six months of 2023 were $12.3 million, a significant decrease from $18.9 million in the same period last year.
- Direct-to-consumer (DTC) net sales for Q2 2023 were $4.9 million, a 26% decline from Q2 2022.
- E-commerce net sales remained flat sequentially.
- Wholesale sales for Q2 2023 were $1.35 million, a 15% increase from the previous quarter.
- However, wholesale net sales were down 56% compared to Q2 2022.
- The company reduced SG&A costs by $6.0 million compared to Q2 2022, representing $24 million in annualized spending reductions.
- Loss from operations for Q2 2023 improved by approximately $3.6 million or 72% compared to Q2 2022.
- Non-GAAP adjusted operating loss for Q2 2023 was approximately $0.8 million, showing an improvement of $1.8 million sequentially.
- Loss from operations for the first six months of 2023 was approximately $5.4 million, a decrease from $30.2 million in the same period last year.
- Non-GAAP adjusted operating loss for the first six months of 2023 was $3.5 million, down from $8.8 million in the prior year's comparative period.
Price Target
cbdMD stocks were trading 6.65% lower on Monday, after market close, at $2.03 per share.
See Also:
cbdMD Secures $2.8M Via Underwritten Public Offering Of Common Stock
cbdMD Expands Its Reach To The United Kingdom With Launch On Amazon UK
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