Sugarbud Craft Growers Corp. (TSXV:SUGR) (OTCQB:SBUDD) has announced its certain preliminary unaudited financial and operating results for the fourth quarter of 2021 and provided management comments regarding the copmany’s outlook for 2022.
Q4 2021 Results & Corporate Operating Update
- Record Grams Sold - shipped between 120,000 – 140,000 grams of dried cannabis and between 385,000g – 405,000g during 2021, representing a year-over-year increase of between 530% – 562%.
- Record Revenue - Achieved strong, double digit, sequential growth in the period and realized gross revenue of between $750,000 – $850,000, and full year gross revenue of between $2.4 – $2.5 million, representing a year over year increase of between 350% – 368%.
- Strong Quarterly Gross Profit - Despite continued industry-wide price compression, Sugarbud continues to gain leverage on gross margin through a very disciplined approach to product pricing, internal cost control and operating efficiency.
- Cost Control and Operational Stability - The company’s focused approach to efficient and high-quality cultivation continues to gain momentum.
- Improved Genetic Strength and Cultivation Outcomes - Successfully crossed the 30% potency barrier for the first time on a commercial batch whilst maintaining critical total quality attributes such as high terpene profiles.
- Expanded Market Access - Received approval from Health Canada for its amended license permitting the sale of cannabis extract, edible and topical products in the third quarter of 2021.
- Expanded Distribution and Reach - throughout the first half of 2021, the company firmly established clear routes to all of Canada’s major markets. Sugarbud products are now available to recreational consumers across 7 provinces and territories.
- Product Portfolio Expansion - added nine new dried flower and two new Cannabis 2.0 product SKU’s to the Sugarbud Craft Cannabis Collection in 2021 including 3 Sugarbud exclusive cultivars – Mule Fuel, Krypto Chronic #2 and Bahama Blizzard #11.
"2021 was a pivotal year for the Company and our commercial growth overall as an emerging leader in Canadian Craft Cannabis,” John Kondrosky, the company’s CEO, said. ”Over the course of our first full year of commercial operations, we established a strong platform for future profitable growth through a combination of relentless focus on delighting our target consumers and an efficient, demand-driven operating model."
Outlook for 2022 - Catalysts for Growth
Sugarbud said that it remains on pace to continue the trend of strong sequential quarter over quarter growth and expects to ship between 140,000 – 160,000 grams of dried cannabis and record gross revenue of between $850,000 – $1 million in the first quarter of 2022.
Photo: Courtesy of Towfiqu barbhuiya on Unsplash
