cbdMD, Inc. YCBD YCBD reported its quarterly and full fiscal financial results on Friday for Sept. 30, 2023, revealing a 27% year-over-year drop in fourth-quarter net sales to $5.7 million.
The company attributed the revenue decline to “industry trends, a reduction of marketing spend and lower wholesale pricing initiatives with our new high-strength products that launched mid-September of 2022.”
Total net sales amounted to $24.2 million in fiscal 2023, down from $35.4 million in the prior year’s period.
“We knew it was going to be a challenging year while we reset the business and are proud of the way our team executed on the challenge,” said Ronan Kennedy, cbdMD’s interim CEO and CFO. “Despite barriers at retail due to our category, we continued to invest in developing new strategic relationships for the cbdMD brand and are excited to announce that cbdMD launched into 160 Sprouts Markets stores across the nation this month.”
See also: cbdMD Reports Q3 2023 Performance: Net Loss Improves, Focus On Cost Management & Strategic Growth
2023 Financial Highlights
- Gross profit totaled roughly $15 million, down from $22.3 million in fiscal 2022.
- Gross profit as a percentage of net sales was 62%, as compared to $63.1% in the prior year.
- Net loss amounted to approximately $23 million, down from $70 million in 2022.
- Operating expenses totaled $24.2 million, down from $40 million in 2022.
- On Sept. 30, 2023, the company had a working capital of approximately $3.4 million…
