CordovaCann Corp. LVRLF CDVA, a cannabis-focused consumer products company, provided an update on its Star Buds Cannabis Co. retail operations in Canada.
Star Buds Cannabis Co. continues to achieve strong performance to close out the summer. The stores continue to benefit from market share gains despite a difficult economic environment. Gross margin is expanding due to menu optimization and management continues to focus on increasing store profitability with strong cost controls.
The Star Buds Cannabis Co. stores posted a record month of revenues in August, following the very strong month of July. In August, the store chain generated revenues of $1.26 million with a gross margin of 25.5%. This equates to a revenue run rate of $15.1 million annually. Six of the fourteen Star Buds Cannabis Co. stores posted record monthly revenues, and eleven of the fourteen stores increased revenues over July.
Management expects Star Buds Cannabis Co. to continue to benefit from closures of competing stores, industry consolidation, and increased customer awareness due to greater availability of third-party delivery. Recent performance and new initiatives give the company increased confidence in its retail strategy, and management continues to work on expanding the Star Buds Cannabis Co. footprint across Canada through both organic store growth and acquisitions.
"We continue to see impressive growth of the Star Buds Cannabis Co. brand during a challenging macroeconomic environment, which we view as confirmation of our original business plan," stated Taz Turner, chairman and CEO of Cordova. "We built Cordova during a global pandemic and see the current economic climate as an opportunity to aggressively grow while much of our competition struggles. We are actively looking for expansion opportunities and believe the company is in an excellent position to take additional market share in the coming months."
Photo: Benzinga; Sources: courtesy of Kindel Media via Pexels
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