Business
HempFusion Reports Strong Q3 2021 Financial Results
HempFusion Reports Strong Q3 2021 Financial Results.
About this update from Hempfusion Wellness Inc.
[{"type":"text","content":"\nHempFusion Wellness Inc. (TSX:CBD.U) (OTCQB:CBDHF) (FWB:8OO) (“HempFusion” or the “Company”), a leading health and wellness company offering premium probiotic supplements and products containing CBD, today reported financial results for the third quarter ended September 30, 2021. All dollar amounts are stated in U.S. dollars. HempFusion will host a conference call and webcast today at 8:30 a.m. Eastern Time to discuss Q3-2021 financial results. Please see the Conference Call Details section of this news release for information about how to participate.\n\nThird Quarter 2021 Financial Highlights\n\n\nQ3-2021 net revenue of $3.1 million increased 155% over the $1.2 million reported in Q3-2020 and 154% versus Q2-2021.\n\n\nExcluding the recently completed acquisitions, HempFusion revenue increased 31% versus Q3-2020 and 30% over the previous quarter as the Company continues to make strong progress on its retail distribution and ecommerce growth initiatives.\n\n\nDirect-To-Consumer (DTC) eCommerce sales of $971,911 increased 190% from $334,322 in Q2-2021.\n\n\nHempFusion stand-alone website-based sales increased 38.2% versus the same period last year.\n\n\nPlatform DTC sales including Amazon, Walmart and Tmall increased 145% versus the same period last year.\n\n\n\n\nB2B net revenue increased 140% to $2.2 million in Q3-2021 from $898,620 in Q2-2021 and 95% compared to $1.1 million in Q3-2020.\n\n\nGross profit was $1.3 million or 43% of net revenue versus 33% in the prior year quarter, representing a 1,000 bps improvement reflective of more effective inventory management, improvements in managing production costs and higher margin sales contributions from the two most recent acquisitions.\n\n\nCash position at the end of the quarter was $5.4 million.\n\n\nThird Quarter 2021 Business Highlights\n\n\nHempFusion completed both of the previously announced acquisitions of Sagely Enterprises Inc. (“Sagely Naturals”) and APCNA Holdings LLC (“Apothecanna”). These acquisitions greatly expand the distribution footprint of the Company to over 15,000 locations, providing the opportunity to expand with ingestible products in the future. The complementary product lines also provide the combined entity with a broader coverage of demographics.\n\n\nThe Company launched its highly anticipated CBD Gum...