KushCo Holdings Inc, a prominent company in the cannabis market providing a range of services to other firms in the industry, reported its first fiscal quarter financial results for the end of November 30th. The figures showed a 186% increase in year-over-year revenues to $25.3 million, setting a new record for the company’s operational history.
While record revenues were the most noteworthy, representing a 26.5 percent increase compared to the previous quarter, there were a variety of other highly positive metrics within the report. One possible negative, however, was that company cash reserves decreased from $13.5 million to $3.0 million. Much of this can be attributed as putting said funds to good use, however, rather than letting it get eroded by inflation, so many analysts likely won’t take to much concern over the decrease.
“Going forward, we continue to develop our transformed business model, investing in the growth and retention of our robust customer base, continuously adding new product and service offerings, and driving effective cross-selling opportunities across the business. New opportunities continue to rapidly emerge in the industry,” said Nick Kovacevich, KushCo CEO. “With the recent signing of the 2018 Farm Bill into law on December 20th to legalize industrial hemp, we expect to see more large-scale production and sale of CBD oil and related products, fueling demand for our packaging supplies and labeling solutions, as well as for our solvents and marketing and branding services.”
The press release went on to say that they expected positive things from the vaping sub-market going forward, which is an area the firm is interested in getting exposed to. According to Grandview Research, the Vaping market on the whole is estimated to be worth over $47 billion over the next six years.
“We also expect to see an increase in adult vaping of CBD, which is a major component of our business and a key driver behind our expanding customer base as vape sales attract new customers onto our sales platform,” concluded KushCo’s CEO. “We are focused on building out a scalable, sustainable business and, as 2019 unfolds and new markets and geographies open up, we will continue to expand our presence as a primary supply chain partner to the industry.”
KushCo shares trading on the over-the-counter markets saw their prices increase by 5.5 percent today, with other major market indicators like the Dow Jones increasing just over one percentage point in the same period.
KushCo Holdings Company Profile
KushCo Holdings, Inc. (OTCQB: KSHB) is the parent company to a strategically integrated group of business units that are transformative leaders across several industries. KushCo Holdings’ subsidiaries and brands provide exceptional customer service, product quality, compliancy knowledge and a local presence in serving its diverse customer base.
KushCo Holdings’ brands include Kush Supply Co., a dynamic sales platform that is the nation’s largest and most respected distributor of packaging, supplies, and accessories to the cannabis and CBD industry, Kush Energy, which provides ultra-pure hydrocarbon gases and solvents, Hybrid Creative, a premier creative design agency for clients across several industries, and Koleto Innovations, the research and development arm driving intellectual property development and acquisitions. –KushCo Holdings