cbdMD, Inc. (NYSE: YCBD) reported preliminary financial results for the fourth quarter of fiscal 2020, and the year ended September 30, 2020. The company said that net sales revenue for fiscal 2020 is expected to range between $41.7 and $41.8 compared to $23.7 million in fiscal 2019. cbdMD’s stock was rising over 2% on the news and shares were lately selling at $2.33.
cbdMD also stated that its net sales revenue for the fourth quarter of fiscal 2020 are expected to range between $11.5 and $11.7 million compared to $9.54 million in the fourth quarter of fiscal 2019. the company did not report any profit or loss numbers.
“cbdMD continues to generate outstanding sales growth while reaffirming its commitment to reaching positive adjusted operating income during calendar 2020,” said Martin Sumichrast, Chairman and co-CEO of cbdMD, Inc. “Our direct to consumer (DTC) net sales channel is performing very strong and we expect to report an increase between 71% and 72% of net sales from 62.5% in fiscal 2019. As we look ahead into 2021, we expect the CBD industry to grow appreciably. We believe that this moment in time represents a singular investment opportunity.”
The promising CBD industry has proven to be challenging for some existing leaders. Massive competition has eaten into the market share for Charlotte’s Web, who has seen its revenues fall. The same with CV Sciences, another CBD company who has been affected by the increasing competition. cbdMD believes its revenue has increased because it had always focused on the direct-to-consumer market versus physical store clients.
Sumichrast added, “Nationally recognized brands, such as cbdMD and PawCBD, will likely capture significant market share as the industry consolidates. Anticipated regulation is expected to reduce competition while creating barriers to entry for new entrants. We believe that now is the time to capitalize on this opportunity. cbdMD has been a brand leader in marketing, product innovation and customer service and we expect to continue to gain more market share and achieve additional growth into 2021.”