- Net revenue for the quarter ending March 31, 2021 was $518,016, a 50% increase over Q4 2020
- The company shipped 78,626 grams of dried cannabis in Q1 2021 compared to 52,000 grams in Q4 2020
- Gross profit before adjustments was 24% in Q1 2021; 4% higher than Q4 2020
- The company entered into a purchase and supply agreement with CannMart Inc. in Q1 2021
- Sugarbud was approved by FINRA for quotation in the United States on the OTCQB Venture Market
- On May 17th, 2021, Mr. Joseph Dietrich was appointed as a member of the board of directors of Sugarbud
- Sugarbud Craft Growers Corp. (SUGR) is up 11 per cent, trading at C$0.05 per share at 4:40 pm ET
Sugarbud Craft Growers (SUGR) has recorded its second consecutive quarterly positive EBITDA result in Q1 2021.
Key Operating Highlights for Q1 2021
- Net Revenue Growth
Sugarbud continued the growth of top-line sales in Q1 2021. Net revenue for the quarter ending March 31, 2021, was $518,016, which represents a 50% increase over Q4 2020.
- Net Volume Growth
The company shipped 78,626 grams of dried cannabis in Q1 2021 compared to 52,000 grams in Q4 2020.
- Gross Profit Growth
Gross profit before fair market value adjustments was 24% in Q1 2021; 4% higher than Q4 2020.
- Price/Gram Stability
Sugarbud bucked the industry-wide trend of the average selling price declines in Q1 2021. The average net selling price per gram remained stable in Q1 2021 at $6.59/g – up marginally ($0.05) from a net ASP of $6.54 in Q4 2020.
- Net Profit from Operations
The company achieved its first net profit from operations during Q1 2021 – a key milestone achieved within the first 9 months of revenue-generating operations.
- Material and Consistent Improvements in EBITDA Across the Last 5 Quarters
Sugarbud improved EBITDA in Q1 2021 by 158% over Q4 2020 and by more than $1.76MM over Q1 2020 – the company’s fifth consecutive quarter of EBITDA growth. Sugarbud remains on track for further growth in 2021.
- Harvest Consistency
During the three months ended March 31, 2021, the company successfully completed two harvests – resulting in a total of 288,384 grams harvested.
- Established Distribution and Reach
Sugarbud established new supply agreements in the Province of Ontario and the Yukon Territory, as well as entered into a registered medical patient supply agreement with CannMart to provide access to the company’s cannabis products to patients nationwide via CannMart’s online medical platform, Vendorlink.
- Cannabis 2.0 Launch Acceleration
The company also entered into a national purchase and supply agreement for Sugarbud’s Cannabis 2.0 products with CannMart Inc. in Q1 2021.
- Over-Subscribed Public Offering
On March 16, 2021, Sugarbud closed a bought-deal public offering of units for aggregate gross proceeds of $4,600,230.
- Upgraded to the OTCQB Venture Market
Subsequent to March 31, 2021, Sugarbud was approved by FINRA for quotation in the United States on the OTCQB Venture Market.
“We are delighted to share another quarter of positive progress against our operating plan – with tangible improvements achieved across all our key operating metrics – most notably revenue growth and gross profit – culminating in our 5th consecutive quarter of EBITDA growth,” stated Sugarbud President and CEO, John Kondrosky.
“Despite significant challenges industry-wide, we view our ability to deliver meaningful growth and stability in our Q1 2021 results as a further testament to our disciplined and focused approach to cost management, operational excellence and exceptional, consumer-driven, craft cannabis products,” Mr. Kondrosky added.
“Together with continued operating discipline, entry into Ontario, further expansion of our dried cannabis product offerings, the upcoming launch of our Cannabis 2.0 products, and our continuous improvements in cultivation and processing techniques, Sugarbud remains on track to deliver sustainable growth and long-term shareholder value moving forward,” concluded Mr. Kondrosky.
On May 17th, 2021, Mr. Joseph Dietrich was appointed as a member of the board of directors of Sugarbud. Mr. Dietrich brings 40+ years of technical, management, investment, and business experience, including practical knowledge of cannabis flower and hashish production, extraction, breeding, and genetics.
Mr. Dietrich holds MBA (financing and marketing) and Science degrees, and certificates in cannabis Plant Production & Facility Management and Teaching.
Mr. Dietrich also sits on the board of Alberta petroleum producer Concrest Corporation Ltd and co-founded TSX-listed TDG Gold Corp. Prior to his appointment as a Director, Mr. Dietrich had been a special adviser to the company.
Sugarbud is an Alberta-based, consumer-driven boutique craft cannabis company focused on the cultivation and production of superior, select-batch, craft cannabis products.
Sugarbud Craft Growers Corp. (SUGR) is up 11 per cent, trading at C$0.05 per share at 4:40 pm ET.