Q2 2024 cbdMD Inc Earnings Call Transcript
Key Points
- cbdMD Inc has strengthened its wholesale leadership and improved its product pipeline, potentially increasing market reach and customer base.
- The company has revitalized its marketing strategy, leading to improved meta engagement rates on Instagram, which signals more effective communication.
- cbdMD Inc has launched its ATRx platinum line in 1,500 GNC corporate stores nationwide, enhancing its retail presence and credibility in the functional mushroom market.
- Significant cost-cutting measures have been implemented, including consolidating offices and renegotiating vendor terms, which are expected to save $2.4 million annually.
- The company is making strides towards stabilizing revenue and has a clear focus on returning to profitability, with several initiatives in place to reduce operational costs and improve financial performance.
- The second quarter fiscal 2024 results did not meet the company's expectations, indicating potential challenges in operational execution or market conditions.
- Direct-to-consumer revenue declined by 25% year-over-year, primarily due to reduced marketing expenses and broader macroeconomic impacts.
- Wholesale business revenue decreased by 44% compared to the previous year, partly due to a one-time credit issued to a customer for expiring inventory.
- Gross profit margin decreased from 64% to 59% year-over-year, impacted by the wholesale credit issued.
- The company experienced a non-cash contingent liability expense of $1.4 million related to the change in fair value of convertible notes, adding complexity to its financial situation.
Good afternoon, and welcome to the cbdMD Inc second quarter fiscal 2024 results conference call. This afternoon, the company issued a press release providing an overview of the second quarter results, which followed the filing of its quarterly report on Form 10-Q. Today's conference call is being recorded and will be available online along with our earnings press release covering our financial results and non-GAAP presentation at cbdMD.com. In accordance with cbdMD retention policies.
(Operator Instructions) I would now like to turn the conference over to Brad Whitford, the Company's Chief Accounting Officer. Brad, if go ahead, sir.
Thank you, Carl, and thank you all for joining cbdMD March 31 2024, second quarter fiscal 2024 earnings call and update on our call today, we also have Ronan Kennedy, our CEO and Chief Financial Officer. We'd like to remind everyone that various remarks about future expectations, plans and prospects constitute forward-looking statements for purposes of Safe Harbor
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
