SGMD
Sugarmade Estimates First LA BudCars Hub to Add More Than $20 Million in Annualized SalesPress Release | 06/16/2020
NEW YORK, June 16, 2020 (GLOBE NEWSWIRE) -- via NetworkWire – Sugarmade, Inc. (OTCQB:SGMD) (“Sugarmade”, “SGMD”, or the “Company”), and its BudCars Cannabis Delivery Service (“BudCars”), is excited to announce record growth in gross profits and gross profit margins for BudCars sales during the month of May (up 46% on a sequential month-over-month basis), and continued strong signals so far during the first half of June, with gross profits growing 9.9% on a week-over-week basis.
The Company believes this performance data provides a template for its per unit operational performance anticipated as it gears up to launch its first Los Angeles hub next month. The Los Angeles cannabis market is arguably the biggest municipal legal cannabis market in the world, and the Company conservatively estimates that its first LA hub will add at least $20 million in annualized sales, with a similar anticipated gross margin profile.
“As we gear up to open our first new hub in the Los Angeles regional market, we continue to see very good signs from our Sacramento hub, with the very rapid topline growth clearly translating to the bottom line as margins hold up and even improve,” commented Jimmy Chan, CEO of Sugarmade. “As we recently reiterated, BudCars is not a delivery business comparable to GrubHub or Uber Eats. It is a top cannabis retail business with very consistent 46-52% gross margins on a wholesale inventory with very secure logistical underpinnings. This differentiation has been a source of misunderstanding, and it is critical to fully appreciating our value proposition and our strategy as a Company moving forward.”
Management notes that May was the Company’s best month on record as far as total gross profits since taking operational control of BudCars, a mark that looks certain to be surpassed by the Company’s performance in June, as growth in sales and gross profits continues to race ahead at approximately 10% on a week-over-week basis.
As noted in the Company’s June 4 press release, BudCars will surpass $10 million in annualized sales by the month of August at its Sacramento location provided the Company maintains its current pace of growth.
In addition, management believes that performance seen at the BudCars Sacramento hub provides a strong basis for understanding key dynamics that will shape operational performance at the Company’s initial southern California BudCars hub, as the Company moves toward the opening of its first Los Angeles location.
Sugarmade Estimates First LA BudCars Hub to Add More Than $20 Million in Annualized SalesPress Release | 06/16/2020
NEW YORK, June 16, 2020 (GLOBE NEWSWIRE) -- via NetworkWire – Sugarmade, Inc. (OTCQB:SGMD) (“Sugarmade”, “SGMD”, or the “Company”), and its BudCars Cannabis Delivery Service (“BudCars”), is excited to announce record growth in gross profits and gross profit margins for BudCars sales during the month of May (up 46% on a sequential month-over-month basis), and continued strong signals so far during the first half of June, with gross profits growing 9.9% on a week-over-week basis.
The Company believes this performance data provides a template for its per unit operational performance anticipated as it gears up to launch its first Los Angeles hub next month. The Los Angeles cannabis market is arguably the biggest municipal legal cannabis market in the world, and the Company conservatively estimates that its first LA hub will add at least $20 million in annualized sales, with a similar anticipated gross margin profile.
“As we gear up to open our first new hub in the Los Angeles regional market, we continue to see very good signs from our Sacramento hub, with the very rapid topline growth clearly translating to the bottom line as margins hold up and even improve,” commented Jimmy Chan, CEO of Sugarmade. “As we recently reiterated, BudCars is not a delivery business comparable to GrubHub or Uber Eats. It is a top cannabis retail business with very consistent 46-52% gross margins on a wholesale inventory with very secure logistical underpinnings. This differentiation has been a source of misunderstanding, and it is critical to fully appreciating our value proposition and our strategy as a Company moving forward.”
Management notes that May was the Company’s best month on record as far as total gross profits since taking operational control of BudCars, a mark that looks certain to be surpassed by the Company’s performance in June, as growth in sales and gross profits continues to race ahead at approximately 10% on a week-over-week basis.
As noted in the Company’s June 4 press release, BudCars will surpass $10 million in annualized sales by the month of August at its Sacramento location provided the Company maintains its current pace of growth.
In addition, management believes that performance seen at the BudCars Sacramento hub provides a strong basis for understanding key dynamics that will shape operational performance at the Company’s initial southern California BudCars hub, as the Company moves toward the opening of its first Los Angeles location.
