Santa Barbara cannabis company sees higher revenue to start 2023
Bloomios, a Santa Barbara-based cannabis products company, on June 1 reported first-quarter revenue of $2.75 million, up 84% from $1.5 million in first quarter 2022.
The company’s gross profit was $675,000 or 25% of revenue as compared to $640,000 or 43% of revenue a year ago, the company said in its first-quarter earnings report.
The decrease in gross margin percentage was primarily due to the increase in the cost of goods sold which was associated with factors related to the integration of Bloomios’ acquisition of Colorado-based gummy manufacturer Infusionz for $23.5 million in October 2022, Bloomios said.
Bloomios’ first-quarter revenue was a 30% increase over fourth quarter 2022,the company said.
“Our strong sequential and year-over-year revenue growth for two quarters in a row demonstrate we’re now back on a growth trajectory,” Bloomios CEO Michael Hill said in a news release.
“We also continued to achieve incremental improvements in operational costs and efficiencies, with this helping to shore up our bottom line from the previous quarter while delivering products faster to the customer,” Hill said.
First quarter operating expenses totaled $2.3 million compared to $1.6 million a year ago.
The increase was primarily due to costs associated with the integration of equipment, systems and operations from the acquisition, Bloomios said.
Net loss totaled $2.7 million compared to a $1.3 million net loss in first quarter 2022. Net loss included interest expense of $1.1 million as compared to $186,000 a year ago.
Assets totaled $2.4 million as of March 31, 2023 – the end of the first quarter – as compared to $2.4 million on Dec. 31, 2022.
Bloomios expects second-quarter revenues to exceed $3 million, up more than 137% from $1.3 million in second quarter 2022.
“Looking ahead, we expect another quarter of sequential and year-over-year growth,” Hill said.
“We believe this will be driven by our broadened customer base, as well as expanding sales team and product portfolio,” he said.
Infusionz is a subsidiary of Upexi, a publicly traded e-commerce brand owner. With Infusionz, Bloomios is acquiring a portfolio of CBD gummy brands and customers, along with its associated order flow, product formulations, manufacturing operations, equipment and sales team.
In its release, Bloomios said another first-quarter highlight was the appointment of Joe Reid as chief manufacturing officer of Bloomios Private Label to lead plant expansion and efficiencies.