cbdMD Reduces Operating Loss, Reports Positive Net Income For Q3 And 15% YoY Drop In Net Sales

cbdMD, Inc. YCBD, an operator of the leading CBD brands cbdMD and Paw CBD, along with its new functional mushroom brand ATRx Labs announced its financial results on Wednesday for the third quarter of fiscal 2024 ending June 30, 2024.

Year-over-year, operational losses improved markedly, shrinking from $1.8 million in the third quarter of fiscal 2023 to $0.38 million in the third quarter of fiscal 2024, the company highlighted in the press release.

Ronan Kennedy, the company's CEO and CFO praised the financial results.

“I am incredibly proud of what our team has accomplished this quarter,” Kennedy said. "Profitability has been our top priority, and we’ve made meaningful progress in the fiscal third quarter. We committed to optimizing our cost structure, and as of August, we’ve delivered on those promises. With gross margins up, SG&A expenses down, and the best non-GAAP adjusted EBITDA result in our Company’s history, we are moving in the right direction. While revenue growth in our category remains challenging, our focus remains on driving profits and enhancing shareholder value.”

See also: cbdMD’s Financial Results: Cost-Cutting Measures For Positive Cash Flow Amid Increasing Losses

Q3 2024 Financial Results

• Net sales totaled $5.1 million, representing a decrease of 15% compared to $6.1 million for the prior year’s comparative fiscal quarter, but up 18% quarter-over-quarter.
• Gross profit totaled 65% in compared to 63% in the second quarter of fiscal 2023.
• Net loss attributable to common shareholders for the third fiscal quarter of 2024 was roughly $0.5 million, or $0.15 per share, as compared to a net loss for the third fiscal quarter of 2023 of roughly $2.8 million, or $1.16 per share.

In May, the company reported an increase in operational losses from $1.4 million in the second quarter of fiscal 2023 to $1.5 million in the second quarter of fiscal 2024. Yet the management remained optimistic. "Transformation is not always linear, and while our second fiscal quarter 2024 results fell short of our ambitions, we believe the operational changes we've enacted are set to propel us forward," Kennedy said at the time.

Read Next

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

YCBD Price Action

cbdMD's shares traded 0.70% lower at $0.4816 per share at the time of writing on Thursday morning.