- SGMD’s BudCars sales topped more than $500,000; company grew for third consecutive month
- ‘We did more business with more people and booked a significant jump in gross profits while holding our 47% gross margin level as volume increased,’ CEO reports
- Company expects to close out first half of 2020 with a linear pace already at $6 million
Sugarmade (OTCQB: SGMD), a product and branding marketing company investing in operations and technologies with disruptive potential, released June numbers for its burgeoning BudCars Cannabis Delivery Service. Of note in the report were sales that topped more than $500,000 and impressive growth for the third consecutive month.
“June was another breakout month for BudCars growth across basically every single metric important to gauging our progress,” said Sugarmade CEO Jimmy Chan. “Our pricing improved. Our average order improved. We did more business with more people and booked a significant jump in gross profits while holding our 47% gross margin level as volume increased. We look forward to continued breakout growth in July.”
The shareholder report included the following key items:
- Total June BudCars sales totaled $502,903, a 36% increase in month-over-month sales growth, compared to May 2020 sales of $367,000
- Total June BudCars gross profits of $228,000, representing 31% month-over-month growth, compared to May 2020 gross profits of $174,000
- Average daily sales increased 41% month over month, reaching $16,763
- Total customer tickets increased to 4,207, a 34% month over month increase over a 29% growth in May
- Average customer order was $119.54, an increase of 2%.
The report noted that based on the company’s rapid BudCars expansion plans, it expects to close out the first half of 2020 with a linear pace already at $6 million in annualized run-rate for sales, with a second-derivative path pointing to an annualized revenue path above $21 million by year end. And these data-driven projections are for SGMD’s Sacramento hub only. “The company continues to believe this data provides meaningful insights for projecting performance at its Los Angeles hub following launch, which should contribute to significant further upside in second half 2020 financial performance projections,” the report stated.
In addition, SGMD is looking to grow BudCars through verticalization. Pending approval from the California Bureau of Cannabis Control, the expansion into cultivation would connect the dots and form a solid product and supply line from farm to delivery that would further cut costs and increase the profit margins (http://nnw.fm/rmz2R).
BudCars is a top-shelf cannabis retail business that offers same-day delivery of top-quality product. Customers can choose from edibles, flower, pre-rolls, vapes, tinctures and concentrate from dozens of premium brands. Once the selection is made and the purchase completed online, BudCars delivers to a customer’s front door on the same day.
Sugarmade Inc. is a product and branding marketing company investing in operations and technologies with disruptive potential. SGMD’s brand portfolio includes CarryOutsupplies.com, SugarRush(TM) and Budcars.com.
For more information, visit the company’s website at www.Sugarmade.com.
NOTE TO INVESTORS: The latest news and updates relating to SGMD are available in the company’s newsroom at http://nnw.fm/SUGAR
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