cbdMD Reports 6% YoY Increase To Record $44.5M In Net Sales In 2021

cbdMD, Inc. YCBD announced its financial results on Friday for the fourth quarter and fiscal year ended September 30.

Based in Charlotte, North Carolina, the company's net sales hit a record of $44.5 million in fiscal 2021.

Despite "anemic industry growth, cbdMD was able to outpace the industry average and record fiscal 2021 net sales of over 6% and gross sales of over 10% as compared to fiscal 2020," Martin A. Sumichrast, the company's chairman and co-CEO said.

He also announced the three-year anniversary of cbdMD entering the CBD industry with the acquisition of Cure Based Development.

"In three short years, we have grown from an unknown start-up brand competing against thousands of other CBD brands, outpacing the pack to firmly positioned at the top of CBD industry, with our three leading brands," Sumichrast stated.

Fiscal 2021 Financial Highlights

• The gross profit margin increased to 67% from 63% in fiscal 2020.
• Non-GAAP adjusted gross margin totaled 19.6%, as compared to 67.7% for the last year.
• Loss from operations was $19.6 million versus a loss of $17.5 million in fiscal 2020.
• Non-GAAP adjusted loss from operations was roughly $13.6. million, compared to our non-GAAP adjusted loss from operations in fiscal 2020 of approximately $11.5 million.
• Net loss attributable to common shareholders was around $25.9 million, or $0.41 per share, as compared to a net income for fiscal 2020 of approximately $12.2 million, or $0.28 per share.
• As of September 30, the company had a working capital of roughly $29.6 million and cash on hand of approximately $26.4 million as compared to working capital of approximately $16.0 million and cash on hand of about $14.8 million.
• Record e-commerce, direct to consumer (DTC) net sales of $32.9 million, or 74.2% of total net sales, representing an increase of $2.5 million, or an 8% increase year-over-year.
• CBD pet brand, Paw CBD, reported $5.7 million in net sales, a 27% increase, as compared to $4.5 million in fiscal 2020.

Q4 2021 Financial Highlights

• Net sales decreased by 16% year-over-year to $9.8 million from $11.7 million in the fourth quarter of fiscal 2020.
• Gross profit margin increased to 58.6% in the fourth quarter from 54.4% in the fourth quarter of fiscal 2020.
• Loss from operations was roughly $7 million compared to $4.5 million from the prior year's quarter.
• Non-GAAP adjusted operating loss was approximately $4.8 million, compared to a $1.2 million non-GAAP adjusted operating loss from the prior year's quarter.
• E-commerce, direct to consumer (DTC) net sales of $7.2 million, a 15% decrease from $8.6 million in the fourth quarter of fiscal 2020.
• Paw CBD reported approximately $1.2 million in net sales, representing a decrease of 25% compared to $1.6 million from the prior year's quarter.

More recent news from cbdMD:

• Amazon's Amify Platform To Offer CBD Products Via Multi-Year Deal With cbdMD
• cbdMD Stock Jumps On Agreement With Amazon Platform Partner Amify
• Spotify Collaboration & Joe Rogan As Exclusive Advertiser Pushes cbdMD's Stock Up

cbdMD Price Action

cbdMD's shares traded 5.64% lower at $1.255 per share at the time of writing on Monday morning.

Photo: Courtesy of Nataliya Vaitkevich from Pexels