- Company announced its BudCars Cannabis Delivery Service racked up 58% month over month sales growth
- SGMD CEO notes that “we believe our daily sales in the LA area could triple that figure relatively quickly”
- In addition to impressive sales figures, Sugarmade maintained extremely strong supplier relationships
Sugarmade (OTCQB: SGMD), an early pioneer within California’s regulated cannabis industry, has seen record-breaking sales numbers with its latest cannabis venture: Budcars Cannabis Delivery Service. In a recent announcement, SGMD reported 58% month over month sales growth for the Sacramento-based subsidiary, which is slated to expand into the Los Angeles area this summer (http://cnw.fm/2DzuN).
“We did about $6,000 per day in sales in March and over $9,500 per day in April, representing a very robust growth trend at our Sacramento hub,” said Sugarmade CEO Jimmy Chan. “May is [looking] better than $11,000 per day, demonstrating continued dramatic growth. And investors should also note that this $11,000 per day figure represents activity in only one area. With our LA hub set to come online at the start of summer, and with the unprecedented stay-at-home extension in that region, we believe our daily sales in the LA area could triple that figure relatively quickly.”
Chan noted that the reported numbers represented record growth for BudCars, with sales growing 58% on a sequential monthly basis over March sales on an average daily-volume basis. In addition, he explained, May numbers show a strong continuation of that trend, with sales forecast to add another 16% beyond the record-breaking figured reported in April.
In addition to the impressive sales figures, Sugarmade has maintained strong supplier relationships. Some reports indicate that the California cannabis market may see widespread supply shortages in the coming weeks. Sugarmade “sees low risk of any issues in securing forward product inventories,” the company announced. “Furthermore, as the company’s competitors run into potential issues in securing their own inventory for distribution, management believes BudCars will likely see market share gains, providing another potential driver for near-term sales growth.”
While the Sugarmade is dedicated to providing unparalleled service in Sacramento, company officials are also focusing on expanding BudCars Cannabis Delivery Service in Southern California, starting with a Los Angeles hub, slated for a July opening. With continued stay-at-home orders throughout the Los Angeles County, expectations for the BudCars LA launch are high.
“We are starting to see a market context where supplier relationships matter more than just about anything else, which plays to our strengths,” Chan said. “Demand growth continues to be off the charts across the California cannabis market, and producers are struggling to keep up. Those trends are pairing up with both structural and situational forces to provide a huge tailwind for BudCars. In addition, we remain on schedule for a July launch for BudCars Los Angeles, which will conservatively add another $20 million in annualized sales on the top line.”
As one of the few cannabis companies pursuing a vertically integrated business model, SGMD is placing its current focus on the expansion of non-storefront cannabis delivery. In addition to BudCars, the Sugarmade brand portfolio includes CarryOutsupplies.com and SugarRush(TM). Sugarmade has benefitted from a remarkable growth spurt thus far in 2020 and will seek to maintain its recent trajectory going forward.
For more information about the company, 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://cnw.fm/SUGAR
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