cbdMD Inc (NYSEAMERICAN:YCBD) posted fiscal second-quarter revenues that came in ahead of expectation.
The US cannabis company saw revenue jump 84% to $5.7 million, topping Street expectations of $3.2 million. Working capital increased to $12.3 million from $10.8 million in the prior quarter.
“Our goal is to build cbdMD into the most recognized CBD brand in the America,” Martin A. Sumichrast said. “Our strong second quarter results place us in a great position to accomplish this goal. Our e-commerce sales platform remains strong and has accounted for over 70% of our total net sales. On a store count basis, we have grown from under 600 doors in December 2018 to over 2,000 currently, and we continue to build momentum.”
The company also set aside $30.9 million in a contingent liability related to the acquisition of the cbdMD brand in December, back when the company was still known as Level Brands. Excluding the contingent liability, the Charlotte-based company posted a loss of $900,000.
The cbdMD brand includes CBD gummies, tinctures, topical, bath bombs, oils and pet products.
Shares slipped 2.5% to close at $6.19.
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