Stem Holdings (CSE: STEM) this evening released a corporate update. Contained within, among other items, was preliminary financial results for the first full quarter of combined sales between Stem and their recent acquisition of Driven Deliveries.
For the full quarter ended March 31, 2021, the company is currently anticipating quarterly gross revenues of US$12.88 million, along with quarterly gross margin of US$5.23 million. For comparison, the company filed revenues of US$5.5 million for the first fiscal quarter ended December 31, 2020, resulting in quarter over quarter growth of 135.9%.
A number of year over year growth figures were provided as well, including total dispensaries, units sold, transactions and more, as seen below.
|Dispensaries||vs. 2020||E-Commerce (Budee™)||vs. 2020|
|Total Dispensaries – 185||+32.1%||Total Units Sold – 161,700||+81.5%|
|Total Units Sold – 257,100||+45.6%||Transactions – 75,700||+97.0%|
|Transactions – 59,500||+16.7%||Average Order Size – US$67.00||+17.5%|
|Average Order Size – US$58.28||+33.3%|
Furthermore, the company is in the process of increasing its cultivation capacity at its Oregon facility. The expansion, 10,000 square feet in size, is expected to be completed this month, resulting in incremental gross revenues of US$8.0 million as well 50% gross margins over the next twelve months.
Stem is driving synergistic results as the Company successfully integrated its most recent acquisitions of Driven Deliveries and the Foothill Health and Wellness dispensary in Sacramento, with record sales, accretive margins, and reduced SG&A. Driven Deliveries services 92% of California’s population – the largest cannabis market in the worldAdam Berk, Chief Executive Officer of Stem
Full financial results for the fiscal second quarter are expected to be released May 15, 2021.
Stem Holdings last traded at $0.84 on the CSE.
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