Humble & Fume Inc. (CSE:HMBL) (OTCQX:HUMBF), a distributor of cannabis and cannabis accessories, reported its financial results for the fiscal 2022 fourth quarter and year ended June 30, 2022.
"As our business fundamentals are improving, we can prioritize the market expansion of the Cannabis business that will generate positive gross margins," Joel Toguri, the company's CEO, said.
Q4 Financial Highlights
- Revenue totaled $15.1 million, compared to $19.4 million in the same period of 2021.
- The gross margin was $2.77 million, down from $3.6 million in the same quarter last year.
- Operating expenses totaled $8.62 million, compared to $2.5 million in the corresponding period of 2021.
- Net loss amounted to $7.72 million, compared to $89 000 in the same quarter of last year.
- Adjusted EBITDA came in negative at $4.5 million, compared to a $3.13 million loss in the same quarter of last year.
- The first two months, May and June, of the California cannabis distribution business generated revenue of $2.9 million.
The company said that it expects further topline growth in the fiscal 2023 as it ramps up efforts with existing industry-leading brands such as Canndescent and Humbolt Farms, as well as onboarding new cannabis brands like Cookies and adding additional retail partners.
"As we continue our efforts to right-size our business, delivering a seamless end-to-end-user experience for our brand and retail partners is always top of mind," Toguri continued. "To ensure faster turnaround times and accuracy in our fulfillment process, we completed the closure of the Nevada warehouse location ahead of schedule and under budget."
FY 2021 Financial Highlights
- Revenue totaled $66.1 million, compared to $74.1 million in the same period of 2021.
- Gross margin was $12.6 million, down from $13.6 million in the same quarter of last year.
- Operating expenses totaled $16.8 million, compared to $8 million in the corresponding period of 2021.
- Net loss amounted to $16 million, compared to roughly $13 million in the same quarter of last year.
- Adjusted EBITDA came in negative at $9.9 million, compared to a $6.64 million loss in the same quarter of last year.
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Photo: Benzinga Edit, Source: Shutterstock
