Three more U.S. states legalized marijuana in some form in November, and Canada’s recreational market opened nationwide in October. The pro-pot momentum was a boon for marijuana suppliers, including KushCo Holdings (NASDAQOTH:KSHB), a company that offers packaging and branding solutions to marijuana growers and dispensaries.
On Jan. 8, KushCo Holdings updated investors on its progress, reporting sales that accelerated rapidly last quarter. Here’s what you need to know about this marijuana supplier’s results.
KushCo Holdings results: The raw numbers
|Metric||Q1 Fiscal Year 2019||Q1 Fiscal Year 2018||Year-Over-Year Change|
|Sales||$25.3 Million||$8.8 Million||186%|
|Cost of goods sold||$22.1 Million||$5.8 Million||281%|
|Gross profit||$3.2 Million||$3.1 Million||3.2%|
|Gain (loss) from operations||($8.1 Million)||$151,443||N/A|
|Net income (loss)||($8.2 Million)||$94,615||N/A|
What happened with KushCo?
KushCo’s quarterly sales growth is the result of tailwinds associated with marijuana legalization efforts and its recent acquisition strategy, which has allowed it to enter new markets, including chemical solvents for extracting marijuana’s chemical cannabinoids, and marijuana marketing. The company’s most significant accomplishments in the quarter included:
- Engaging Manhattan Associates as its warehouse management system provider and GoLeanSixSigma.com as consultants to boost its operating efficiency.
- Establishing an office in the Jiangbei District of Ningbo, China, to better coordinate international manufacturing.
- Appointing Christopher Tedford as chief financial officer to expand its C-suite.
- And forming an advisory board that will offer strategic advice to accelerate growth and enhance operational performance.