cbdMD Inc. (YCBD) stock plunged by 9.02% in the pre-market, when the company posted its fiscal 2021 earnings, on December 17.
During regular trading, the stock was up by 17.70% at the closing price of $1.33, with 1.32 million shares exchanging. Following the news, the stock went down to $1.21 in the premarket.
Currently, cbdMD Inc. (YCBD) has a market capitalization of $76.84 million. Moreover, the company has 57.78 million shares outstanding in the market.
What Happened?
The U.S. CBD market suffered from a great challenging year in 2021, according to the Brightfield Group. It is expected that the year-over-year growth rate in the market will be nearly flat at 2.5%. Even though the whole market suffered, YCBD, according to its Chairman and co-CEO, Martin A. Sumicharst, showed great results.
While the company declared the results very promising as compared to the overall market, it failed to impress the investors.
YCBD’s Financial Results
On December 17, the company announced its financial results its fourth quarter and full-year fiscal 2021. The fiscal year 2021 ended on September 30, 2021. In fiscal 2021, YCBD’s net sales were $44.5 million against $41.8 million in the previous year. This shows an increase of 6% year over year.
Moreover, the gross profit in fiscal 2021, was 67%, against 63% in fiscal 2020. Subsequently, the non-GAAP adjusted gross margin was $19.6% in fiscal 2021, against 67.7% last year.
Furthermore, fiscal 2021, saw a net loss attributable to common shareholders of $25.9 million. This compares to a net income of $12.2 million in fiscal 2020. Consequently, the net loss was $0.41 per share in fiscal 2021, against net income of $0.28 per share in fiscal 2020.
In addition, fiscal 2021, saw a non-GAAP adjusted loss from operations of $13.6 million, against $11.5 million in the previous year.
YCBD ended fiscal 2021, with working capital of $29.6 million approx. and cash on hand of $26.4 million approx. This compares to working capital of $16.0 million approx. and cash on hand of $14.8 million approx. at the end of fiscal 2020.
YCBD’s Recent Developments
On December 03, the company announced the commencing of a clinical study in collaboration with the University of South Carolina. According to this, the collaborators will study the effects of YCBD’s board spectrum cannabinoid on sleep, mood, and pain. Moreover, this study will further support YCBD’s products’ efficacy.
