Sugarbud Craft Growers Corp. announced that the Company has recorded its second consecutive quarterly positive EBITDA result in Q1 2021 and the filing of its unaudited condensed consolidated interim financial statements for the three months ended March 31, 2021 and related management’s discussion and analysis (“MD&A”). Sugarbud’s Financial Statements and MD&A are available on SEDAR at www.sedar.com and on Sugarbud’s website here: Sugarbud Q1, 2021 Financials and MD&A.
Key Operating Highlights for Q1 2021
- Net Revenue Growth | Sugarbud continued the growth of top-line sales in Q1 2021. Net revenue for the quarter ending March 31, 2021 was $518,016, which represents a 50% increase over Q4 2020.
- Net Volume Growth | The Company shipped 78,626 grams of dried cannabis in Q1 2021 compared to 52,000 grams in Q4 2020.
- Gross Profit Growth | Gross profit before fair market value adjustments was 24% in Q1 2021; 4% higher than Q4 2020.
- Price/Gram Stability | Sugarbud bucked the industry-wide trend of average selling price (“ASP“) declines in Q1 2021 – evidence that its focus on total quality and value in the premium craft sector is aligned with consumer expectations and demand. Average net selling price per gram remained stable in Q1 2021 at $6.59/g – up marginally ($0.05) from a net ASP of $6.54 in Q4 2020.
- Net Profit from Operations | The Company achieved its first net profit from operations during Q1 2021 – a key milestone achieved within the first 9 months of revenue-generating operations.
- Material and Consistent Improvements in EBITDA Across the Last 5 Quarters | Sugarbud improved EBITDA in Q1 2021 by 158% over Q4 2020 and by more than $1.76MM over Q1 2020 – the Company’s fifth consecutive quarter of EBITDA growth. Sugarbud remains on track for further growth in 2021.
- Harvest Consistency | During the three months ended March 31, 2021, the Company successfully completed two harvests – resulting in a total of 288,384 grams harvested. Sugarbud’s cultivation and processing operations continue to deliver consistent yields (average 90.5g per plant during Q1 2021) while simultaneously maintaining exceptional terpene content (2-5%) and total potency (THC 19-21%) – a testament to our focus on exceptional genetics, plant health and best practice cultivation and post-harvest processing techniques.
- Established Distribution and Reach | Established new supply agreements in the Province of Ontario and the Yukon Territory, as well as entered into a registered medical patient supply agreement with CannMart to provide access to the Company’s cannabis products to patients nationwide via CannMart’s online medical platform, Vendorlink.
- Cannabis 2.0 Launch Acceleration | The Company also entered into a national purchase and supply agreement for the Company’s Cannabis 2.0 products with CannMart Inc. in Q1 2021.
- Over-Subscribed Public Offering | On March 16, 2021, the Company closed a bought-deal public offering of units for aggregate gross proceeds of $4,600,230.
- Upgraded to the OTCQB Venture Market | Subsequent to March 31, 2021, the Company was approved by FINRA for quotation in the United States on the OTCQB Venture Market which the Company expects will help maximize long-term shareholder value by increasing visibility and improving liquidity for investors.
“We are delighted to share another quarter of positive progress against our operating plan – with tangible improvements achieved across all our key operating metrics – most notably revenue growth and gross profit – culminating in our 5th consecutive quarter of EBITDA growth,” stated Sugarbud President and CEO, John Kondrosky.
“Despite significant challenges industry-wide, we view our ability to deliver meaningful growth and stability in our Q1 2021 results as a further testament to our disciplined and focused approach to cost management, operational excellence and exceptional, consumer-driven, craft cannabis products,” Mr. Kondrosky added.
“Together with continued operating discipline, entry into Ontario, further expansion of our dried cannabis product offerings, the upcoming launch of our Cannabis 2.0 products, and our continuous improvements in cultivation and processing techniques, Sugarbud remains on track to deliver sustainable growth and long-term shareholder value moving forward,” concluded Mr. Kondrosky.
Corporate Update
On May 17th, 2021, Mr. Joseph Dietrich was appointed as a member of the board of directors of Sugarbud. Mr. Dietrich brings 40+ years of technical, management, investment, and business experience, including practical knowledge of cannabis flower and hashish production, extraction, breeding, and genetics. Mr. Dietrich holds MBA (financing and marketing) and Science degrees, and certificates in cannabis Plant Production & Facility Management and Teaching. Mr. Dietrich also sits on the board of Alberta petroleum producer Concrest Corporation Ltd, and co-founded TSX-listed TDG Gold Corp. Prior to his appointment as a Director, Mr. Dietrich had been a special adviser to the Company.
About Sugarbud
Sugarbud is an Alberta-based, consumer-driven boutique craft cannabis company focused on the cultivation and production of superior, select-batch, craft cannabis products. Our vision and mission are to become a trusted and well-respected consumer brand renowned for providing exceptional high-quality craft cannabis products to legal markets by delighting the most discerning of cannabis consumers. For more information please visit: www.sugarbud.ca
