Loading...
•
Dec 31, 2024
cbdMD Q1 2025 Earnings Report
cbdMD reported a decrease in net sales but achieved positive net income and EBITDA, driven by strategic changes and growth in wholesale sales and new beverage line.
Key Takeaways
cbdMD reported total net sales of $5.1 million for the three months ended December 31, 2024, a decrease of 4.9% year-over-year. Despite the sales decline, the company achieved a net income of $15,095 and positive Adjusted EBITDA of $214,817. This performance was attributed to optimizing product portfolio, right-sizing cost structure, and investing in marketing, with wholesale sales showing a positive impact and the launch of a new beverage line.
Total net sales decreased by 4.9% year-over-year to $5.1 million, primarily due to a reduction in e-commerce sales.
The company achieved a net income of $15,095 for the quarter, a significant improvement from a net loss in the prior year.
Adjusted EBITDA was positive at $214,817, reflecting the company's focus on profitability and cost controls.
Wholesale sales increased by $0.2 million year-over-year, partially offsetting the decline in e-commerce sales.
cbdMD
cbdMD
cbdMD Revenue by Segment
Revenue by Segment
E-commerce sales Revenue
CapyFin.comWholesale sales Revenue
CapyFin.com Forward Guidance
cbdMD is focused on achieving profitability and expanding its business in fiscal 2025 and beyond through product innovation, channel expansion, and brand cultivation. The company aims to improve profitability and cash flow, with a focus on cost controls and strategic growth initiatives.
Positive Outlook
- Continued focus on optimizing product portfolio and right-sizing cost structure to drive positive earnings.
- Launch of new hemp-derived, ready-to-drink beverages under the Herbal Oasis line, targeting a fast-growing category.
- Ongoing research and development to enhance product effectiveness and improve taste, with a pipeline of new products and formulation upgrades.
- Expanding revenue channels through relationships with traditional retail accounts and distributors, including Door Dash and GNC.
- Continued international expansion, particularly in the UK via Amazon and gaining market share in Central and South America.
Challenges Ahead
- Overall category facing challenges, despite the company's optimistic market positioning.
- Larger cost-saving opportunities are harder to identify and implement after significant progress in 2023 and 2024.
- Anticipated increases in marketing expenses in future quarters.
- Working capital position may not be sufficient to support daily operations for the next twelve months.
- Current capital structure, specifically the overhang of Series A Preferred stock, has stalled potential accretive acquisitions.
Revenue & Expenses
Visualization of income flow from segment revenue to net income