HempFusion Wellness sees higher 1Q revenue as consumer e-commerce sales surge

HempFusion Wellness Inc (TSE:CBD.U) (OTCQX:CBDHF) (FRA:8OO) announced that its first-quarter 2021 revenue rose 7.6% sequentially to US$983,496, led by a 59% increase in its direct-to-consumer (DTC) e-commerce sales.

The company also ended the quarter with US$17,074,030 in cash as of March 31, which it said gives it “ample room for strategic Mergers and Acquisitions (M&A).”

“With nearly all international business paused due to COVID throughout 2020 and 1Q 2021, and with slower than expected reopenings, the company still achieved an incremental quarter-over-quarter growth of 7.6%,” CEO Jason Mitchell said in a statement.  

READ: HempFusion Wellness re-ignites international sales with a $216,000 order from Dubai

“Now, with vaccine rollouts taking place across the country, we are encouraged with reopening rates and excited that our sales, which currently take place in approximately 75% brick-and-mortar businesses, are beginning to reopen,” Mitchell added.

The company also recorded US$75,994 in international sales during the quarter, receiving new purchase orders as it entered additional countries including China, Ireland, and the UK.

“These international purchase orders have the potential to drive millions in revenue. We are working feverishly to accelerate sales through organic channels and the continued pursuit of M&A opportunities; early indications have 2Q shaping up to be our best quarter yet,” Mitchell continued.

HempFusion also realized a 1Q gross profit of $280,205, or 28.5% of net revenue, attributed primarily to improvement in inventory and supply chain management.

The company also noted other accomplishments during the quarter, including:

• Becoming the No. 2 most recognized CBD brand in America according to Brightfield Group
• Being ranked No. 1 in product sales and units sold in one of the largest food/drug/mass (FDM) retailers, as of the end of January 2021 according to data by NielsenIQ

HempFusion distributes its family of brands, including HempFusion, Probulin Probiotics, Biome Research, and HF Labs, to around 4,000 retail locations across all 50 states of the US and select international locations.

In addition, its wholly-owned subsidiary Probulin Probiotics is one of the fastest-growing probiotics companies in the US, according to data technology company SPINS. The subsidiary offers the unique MAKtrek 3-D system that ensures more probiotics arrive alive.

Contact Sean at [email protected]

Story by ProactiveInvestors