Sugarbud Craft Growers Corp. (TSXV:SUGR) (OTCQB:SBUDD) announced its certain preliminary unaudited financial and operating results for the fourth quarter of 2021 and provided feedback to management regarding company outlook for 2022.
Fourth Quarter 2021 Results and Business Operational Update
- Record grams sold – shipped between 120,000 to 140,000 grams of dried cannabis and between 385,000 g and 405,000 g in 2021, which represents a year-over-year increase of between 530% and 562%.
- Record turnover – Achieved strong double-digit sequential growth during the period and achieved gross revenue of between $750,000 to $850,000 and an annual gross income between $2.4 and $2.5 million, which represents a year-over-year increase from 350% to 368%.
- Strong quarterly gross profit – Despite continued industry-wide price compression, Sugarbud continues to drive gross margin through a highly disciplined approach to product pricing, internal cost control and operational efficiency.
- Cost control and operational stability – The company’s focused approach to an efficient, high-quality culture continues to gain momentum.
- Improved genetic strength and cultivation results – Successfully passed the 30% potency barrier for the first time on a commercial batch while maintaining critical total quality attributes such as high terpene profiles.
- Wider market access – Has received Health Canada’s approval for its amended license allowing the sale of cannabis extractedibles and topicals in Q3 2021.
- Wide distribution and reach – throughout the first half of 2021, the company firmly established clear routes to all major markets in Canada. Sugar some products are now offered to recreational consumers in 7 provinces and territories.
- Extension of the product portfolio – added nine new dried flowers and two new Cannabis 2.0 product references to the Sugarbud Craft Cannabis Collection in 2021 featuring 3 exclusive Sugarbud cultivars – Mule Fuel, Krypto Chronic #2 and Bahama Blizzard #11.
“2021 has been a pivotal year for the Company and our overall business growth as an emerging leader in Canadian craft cannabis,” John Kondrosky, CEO of the company, noted. “In our first full year of business operations, we have established a solid platform for profitable future growth through a relentless focus on delighting our target consumers and an efficient, customer-focused operating model. Requirement.”
Outlook for 2022 – Growth Catalysts
Sugarbud said it remains on pace to continue the trend of strong quarter-over-quarter sequential growth and plans to ship between 140,000 and 160,000 grams of dried cannabis and save gross revenues between $850,000 and $1 million in the first quarter of 2022.
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