Business
HempFusion Reports Q2, 2021 Financial Results
HempFusion Reports Q2, 2021 Financial Results.
About this update from Hempfusion Wellness Inc.
[{"type":"text","content":"\nHempFusion Wellness Inc. (TSX:CBD.U) (OTCQX:CBDHF) (FWB:8OO) (“HempFusion” or the “Company”), an industry leader in full spectrum cannabidiol (CBD) hemp extract wellness products and probiotics, today reported financial results for the second quarter ended June 30, 2021. All dollars are stated in US Dollars.\n\n“With year over year growth in net revenues of 84%, year over year direct to consumer ecommerce revenues up 268%, and our leading regulatory preparedness, HempFusion’s momentum shows it to be the right company, at the right time, to lead this new category into the future,” stated Dr. Jason Mitchell, HempFusion CEO. “Additionally, subsequent to the quarter end, the Company closed on two accretive acquisitions and highly respected CBD brands, adding significant new distribution points and products,” continued Mr. Mitchell.\n\nSecond Quarter 2021 Financial Highlights \n\n\nRevenue increased 25% to over $1.2 million for Q2 2021 compared to $983,496 in Q1 2021 and increased 84% compared to $670,728 in Q2 2020.\n\n\nDirect-to-consumer eCommerce sales increased 37% to $334,322 from $244,255 in Q1. Website based sales increased 54% and DTC including Amazon, Walmart and Tmall increased 23% sequentially in Q2.\n\n\nB2B net revenue increased 22% to $898,620 in Q2 2021 from $739,241 in Q1 2021 and a 55% increase year-on-year compared to $579,910 in Q2 2020.\n\n\nInternational sales began to return following Covid, increasing by 68% to $203,296 in Q2 2021 from $75,994 in Q1 2021.\n\n\nLaunched private label division and were immediately awarded a 10-product private label contract with a top publiclytraded national grocery retailer. We believe this division could represent multi million dollars in revenue within the next few years for both CBD and non-CBD products.\n\n\nGross profit was $232,417 or 19% of net revenue versus -19% in the prior year quarter, representing a 38% improvement reflective of more effective inventory management and improvements in managing production costs.\n\n\nOperating expenses were $6,568,503, an increase of 4% from $6,306,703 in Q1 2021, primarily attributed to acquisition related expenses as well as marketing and digital related expenses.\n\n\nStrong cash position ending the quarter at $11.4 million.\n\n\nSecond Quarter 2021 Business Highlights \n\n\n...