cbdMD, Inc. (YCBD), a leading operator of CBD brands cbdMD and Paw CBD, along with its new functional mushroom brand ATRx Labs, announced its financial results for the third quarter of fiscal 2024, ending June 30, 2024. The company reported a significant improvement in its financial performance, showcasing a marked reduction in operational losses.
Operational losses shrunk from $1.8 million in the third quarter of fiscal 2023 to $0.38 million in the third quarter of fiscal 2024, a positive development highlighted in the company’s press release. Ronan Kennedy, the company’s CEO and CFO, expressed his satisfaction with the results, emphasizing the company’s commitment to profitability.
“I am incredibly proud of what our team has accomplished this quarter,” said Kennedy. “Profitability has been our top priority, and we’ve made meaningful progress in the fiscal third quarter. We committed to optimizing our cost structure, and as of August, we’ve delivered on those promises. With gross margins up, SG&A expenses down, and the best non-GAAP adjusted EBITDA result in our Company’s history, we are moving in the right direction. While revenue growth in our category remains challenging, our focus remains on driving profits and enhancing shareholder value.”
Despite the improved profitability, the company experienced a decline in net sales, totaling $5.1 million, representing a 15% decrease compared to $6.1 million in the same period last year. However, this figure showed an 18% increase compared to the previous quarter.
Gross profit reached 65%, a positive sign compared to 63% in the second quarter of fiscal 2023. The net loss attributable to common shareholders for the third fiscal quarter of 2024 was approximately $0.5 million, or $0.15 per share, compared to a net loss of $2.8 million, or $1.16 per share, in the third fiscal quarter of 2023.
While the company reported increased operational losses in the second quarter of fiscal 2024, management remained optimistic about the future. “Transformation is not always linear, and while our second fiscal quarter 2024 results fell short of our ambitions, we believe the operational changes we’ve enacted are set to propel us forward,” Kennedy stated previously.
The company’s stock traded at $0.4816 per share on Thursday morning, down 0.70% from the previous day.
