Hill Street Beverage Company Inc (CVE:BEER) saw its revenue increase during its fiscal 2020 on the strength of returning customers eager to purchase its alcohol-free product offering, according to results released Thursday.
During the 12-month period ended June 30, 2020, the Toronto-based company generated revenue of C$2.6 million and a gross profit of C$726,000, up 68% year-over-year.
Nearly all of the alcohol-free revenue earned during the year was from existing retail customers, the company’s COO June Nicholson told investors, whereas in previous years, its growth came mainly from new retail accounts.
READ: Hill Street Beverage Company announces launch of its new line of cannabis-infused drinks for Canada
"With the global pandemic taking its toll on all aspects of our lives, especially small businesses like ours, we couldn't be happier to have generated growth in revenues this fiscal year,” CEO Terry Donnelly said in a statement.
“With the challenges we have experienced in our supply chain as a result of COVID-19 hopefully behind us, and with new manufacturing partnerships we have secured, we are looking forward to the exciting launch of our new cannabis-infused beverage portfolio.”
A significant portion of new revenue also came from online US-based customers. Total online revenues increased by 242% year-over-year in its fourth quarter, according to the firm.
The group narrowed its net loss to $3.9 million, or C$0.04 per share, compared to the $5.9 million loss ($0.07 per share) it posted during the same period a year ago thanks to a sharp reduction in operating expenses. It ended the 12-month period with C$700,000 in cash.
Hill Street is currently preparing for its rollout of cannabis-infused beverages from its facility in Mississauga, Ontario. The company recently announced the launch of its (V)ia SPRIZA Cannabis Infused Beverages brand, which should be available in Ontario in December 2020. Hill Street told shareholders that the firm is exploring additional cannabis 2.0 products to manufacture.
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