Ancillary Cannabis Company Humble & Fume's Quarterly Revenue Improves 33.7% YoY To $19.4M

Ancillary cannabis company Humble & Fume Inc. HMBL HUMBF reported its financial results for the fiscal 2021 fourth quarter and year ended June 30, 2021, with quarterly revenue of $19.4 million, up by 33.7% from the same quarter of fiscal 2020. The increase in revenue was due primarily to strong sales in the U.S. and Canadian accessories wholesale market

Quarterly Highlights

• Gross profit was $3.6 million, resulting in a gross margin of 18%, compared to $1.7 million, or a gross margin of 12 percent, in the same period of 2020;
• Adjusted EBITDA was a loss of $2 million, which compares to an adjusted EBITDA loss of $2.2 million in the corresponding quarter of the prior year;
• Net loss was $88,904, or $0.00 per diluted share, versus a net loss of $4.1 million or $0.08 per share in the fourth quarter of fiscal 2020.

Full Fiscal 2021 Highlights

• For the fiscal year 2021 revenue reached $74.1 million, up by 71% from $43.4 million in fiscal 2020;
• Gross profit for the year hit $13.6 million, resulting in a gross margin of 18%, an increase of 143% compared to fiscal year 2020;
• Adjusted EBITDA was a loss of $5.5 million, compared to a loss of $8.2 million for fiscal year 2020;
• 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 fiscal year 2020;

"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, Humble's executive chairman of the board.

Operational Updates

• Completed its go-public transaction and commenced trading on the Canadian Stock Exchange under the symbol "HMBL"
• Strengthened its Board of Directors with the appointment of Jakob Ripshtein, former president of Aphria Inc., a leading global cannabis-lifestyle consumer packaged goods company that since merged with Tilray Inc. TLRY;
• Enhanced leadership team with the appointment of Joel Toguri joining as Chief Executive Officer.
• Entered into a strategic supply agreement with Fire & Flower Holding Corp. FFLWF to offer an expanded catalog of Humble's portfolio of products to Fire & Flower customers online and in-store throughout North America.
• Signed exclusive sales distribution partnership with HCS and TREC Brands Inc. in Canada. TREC Brands is a global premium cannabis brand house, which includes Thumbs Up Brand, Blissed and WINK cannabis brands offering premium dried flower, edibles and cannabis oils.
• Launched FUME, a cannabis extracts brand delivering a pure and flavorful cannabis experience, which has pioneered a proprietary extraction process that removes terpenes from the plant without the use of solvents, guaranteeing a pure, true-to-strain product.

Photo: Courtesy of Jamie Edwards on Unsplash