cbdMD Archives - Green Market Report

StaffOctober 14, 2020


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.”

Debra BorchardtAugust 12, 2020


cbdMD, Inc. (NYSE: YCBD) reported net sales of $10.6 million in its third fiscal 2020 quarter ending June 30, 2020, which beat the Yahoo Finance analyst’s estimates for revenue of $9.57 million. This was a 13% sequential increase over the second quarter and a 33% increase over the same time period for last year.

The company trimmed its net loss to $8.9 million from last year’s net loss of $29.2 million. The company said this was “mainly due to a non-cash expense of approximately $7.58 million in the Company’s contingent liability which is associated with earnout shares which may be issued under the terms of the December 2018 acquisition of Cure Based Development.”

The loss per share fell to $0.18 from last year’s loss per share of $1.19. This missed the average analyst’s estimates for a loss of $0.03. Two analysts cover the stock with an average price target of $3.56. The stock was falling by 7% in early trading to lately sell at $3.30.

“cbdMD reported its single biggest quarterly net sales in its history. Our decisions to concentrate on building brand equity for award-winning cbdMD and Paw CBD brands, as well as and focus on our e-commerce strength, has paid off. We have separated ourselves from our competitors and demonstrated that we can grow market share and be fiscally responsible at the same time, with our GAAP and non-GAAP operating results improving by 80% and 96%, respectively, from the comparable periods in fiscal 2019. With $15 million in cash on hand at June 30, 2020, we believe we have more than enough financial strength to grow our operations for the foreseeable future, absent any additional unforeseen impact from COVID-19,” said Martin Sumichrast, the Company’s Chairman and co-Chief Executive Officer.

Sales Highlights

cbdMD reported quarterly e-commerce, direct to consumer (DTC) net sales of $8.2 million, an increase of 77% year-over-year and a sequential quarterly increase of approximately 21%. The company’s e-commerce, direct to consumer (DTC) sales accounted for in excess of 77% of total net sales in the June 2020 quarter, an increase from 58% from prior year’s quarter. The company’s CBD pet brand, Paw CBD, reported an approximate 64% increase in net sales from its March 2020 quarter of approximately $750,000 to approximately $1,229,000 for its June 2020 quarter.

The company is hosting a call after the market close.

Wednesday, August 12, 2020, 4:15 p.m. Eastern Time




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