Canada's Top Weed Accessory Distributor Will Ramp Up In California, Reports 2023 Sales Uptick

Cannabis accessory distributor Humble & Fume Inc. HMBL HUMBF reported its full-year financial results for the period ended June 30, 2023.

FY 2023 Financial Highlights

• Total revenue amounted to CA$68.5 million ($49.6 million), up from CA$66.1 million in fiscal 2022.
• Gross margin was CA$10.2 million, down from CA$12.6 million in the prior year.
• Total operating expenses were CA$34.8 million, up from CA$29.5 million in 2022.
• Net loss grew year-over-year to roughly CA$25 million from CA$16 million in the prior year.
• As of June 30, 2023, the company had CA$28.2 million in total assets, down from CA$36.4 million in 2022.
• Total liabilities amounted to CA$12.8 million as of June 30, 2023, up from CA$9.95 million in the prior year.
• Cash and cash equivalents were CA$2.8 million, down from CA$6.3 million on June 30, 2023.

California Ramp Up

Jakob Ripshtein, the CEO of the Canada-based distributor of cannabis, praised the company's operations in California.

"We are pleased to report the positive financial results for the fiscal fourth quarter and full year of 2023, particularly highlighting our impressive growth efforts in the California distribution business," Ripshtein said.

In the spring of 2022, Humble Cannabis Solutions, a subsidiary of Humble & Fume, officially kicked off operations in the Golden State and signed an exclusive distribution services agreement with California brand house Canndecent Brands. The company subsequently entered an exclusive distribution deal in the Golden State with Cookies, a cannabis brand by billboard-charting rapper and entrepreneur Berner.

The company noted in Thursday's press release that operating expenses, when excluding the California distribution business, were in fact, reduced by 46% as a result of the company's dedication to strategic cost management.

The company plans to intensify its efforts in the California cannabis sector going forward.

Humble & Hume also highlighted the 36% reduction in inventory value compared to the previous year.

Photo: Courtesy of geralt and Kindel Media by Pixabay

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