cbdMD Reports YoY Dip In Q1 Net Sales, Shrinks Operating Loss, Expands Into Hemp And Mushroom Products Markets

cbdMD, Inc. YCBD announced its first quarter financial results Tuesday for the three months ended Dec. 31, 2023.

The North Carolina-based medical cannabis company said that it has improved its operating loss from $4.1 in the first quarter of 2023 to $1.1 million for the first quarter of fiscal 2024.

Ronan Kennedy, cbdMD’s Interim CEO and CFO said the company also addressed "some larger strategic goals which culminated with the launch of our hempMD brand and functional mushroom brand, ATRx Labs."

The company recently entered into a securities purchase agreement with five institutional investors to secure financing for the national rollout of its new ATRx Labs functional mushroom products.

"This diversification allows us to access markets and channels more challenging to CBD while still attracting consumers focused on utilizing natural products to improve their daily lives," Kennedy said. "While still early, the positive reception, including the Wholefoods Magazine 2024 Natural Choice nominations, and growing commitments around our ATRx Line are promising indicators of our strategic direction.”

See also: CBD Giant’s Challenging Year: Q4 Net Sales Slide By 27% But Net Loss Narrows 67% YoY

Q1 2024 Financial Highlights

• Total net sales amounted to $5.37 million, down from roughly $6 million in the prior year's period.
• Gross profit was flat year-over-year at roughly $3.5 million.
• Operating expenses totaled $4.6 million, down from $7.6 million in the same quarter of last year.
• Non-GAAP adjusted EBITDA came in negative at $697,988, representing a year-over-year improvement from a $2.6 million adjusted EBITDA loss in the first quarter of fiscal 2023.
• Direct-to-consumer (DTC) net sales were $4.4 million or 82.3% of total net sales, representing a decrease from $4.9 million, or 10% from the first quarter of fiscal 2023.
• On Dec. 31, 2023, the company had working capital of approximately $1.4 million and cash on hand of roughly $1.5 million as compared to working capital of approximately $3.4 million and cash on hand of roughly $1.8 million at Sept. 30, 2023.

Now read: Medical Cannabis Co. Expands Into National Grocery Chain: cbdMD’s Gummies Hit Shelves At Sprouts Farmers Market

YCBD Price Action

cbdMD's shares traded 4.11% lower at $0.7 per share at the market close on Tuesday.

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