After the market closed on Tuesday, Humble & Fume Inc.(CSE: HMBL) reported its financial results for the fiscal 2021 fourth quarter and year ending June 30, 2021. For the quarter, Humble delivered revenue of $19.4 million an increase of 33% from last year’s $14.5 million. The company attributed the increase in revenue to strong sales in the U.S. and Canadian accessories wholesale market. Humble’s accessory lines include some of the highest-rated products like Puffco, Storz & Bickel and Ryot.
The company reported that the net loss for the quarter was $88,904, or $0.00 per diluted share, a 99.7% decrease from last year’s net loss of $4.1 million, or $0.08 per share. The company said that the net losses were primarily driven by growth in overall headcount levels primarily to support increased U.S. and Canada sales, higher sales and marketing expense to support brand partnerships and the launch of FUME, and higher freight costs included in the company’s cost of goods sold selling expenses, and higher share-based compensation expense compared to the year-ago period.
“Humble bridges the gap between cannabis brands, accessory producers and the growing retail market in North America to drive increased sales and maximize financial performance for our partners. Throughout fiscal 2021, we significantly increased our new retailer accounts, which helped drive record fiscal year revenue of $74 million. Revenue increased 71% while gross margin increased by 143% year-over-year. We achieved this strong organic growth and margin enhancement while continuing to identify new opportunities to grow profitably,” said Joel Toguri, Chief Executive Officer of Humble. Togiru was recently named the company’s CEO and was the former Chief Revenue Officer at The Supreme Cannabis Company Inc.
Full Year Results
Humble reported that the revenue for fiscal year 2021 was $74.1 million, an increase of 71% from last year’s $43.4 million. The company attributed the increase in revenue to stronger sales in the U.S. and Canadian markets for the company’s accessories line, an increase in sales from Fume Labs, and increased service fees for Humble Cannabis Solutions. The operating loss declined by 14% as operating expenses as a percentage of revenue improved year-over-year by 50%. The net loss for the fiscal year 2021 was $13.0 million, or $0.20 per diluted share, compared to $15.7 million, or $0.26 per share, for the fiscal year 2020. The change in net losses year-over-year were driven by higher gross margins and sales in 2021 from the company’s core distribution business, as well as one-time charges related to its RTO transaction and the fair value adjustment of the derivative liability for the convertible debenture.
Mr. Toguri added, “As we look ahead to the next few quarters, we are focused on rationalization of the business further to drive profitable growth. In addition to maintaining our rapid growth, we are laser-focused on further improving margins and cash flow by managing expenses, finding efficiencies and streamlining our product procurement and inventory management systems. We believe that we have the vision and capital resources to continue executing during our rapid growth phase and as we move to generate sustainable profit and positive cash flow to deliver long-term shareholder value.”
“Fiscal 2021 resulted in significant milestones for Humble, most notably the successful closing of our go-public transaction, commencing trading on the CSE, and the introduction of new leadership, with Joel Toguri as Chief Executive Officer. As a proven leader, with strong experience in the cannabis industry, the Board is extremely pleased to have Joel at the helm as we streamline operations and continue to focus on retail distribution and sales growth over the coming year,” said Shawn Dym, Executive Chairman of the Board of Humbl