KushCo Holdings provides branding and packaging for marijuana products, and the continued increase in states that have legalized recreational use means that revenue for KushCo is on the rise, and it is increasing in large increments.
KushCo has released comparative revenue numbers for the first fiscal quarter of 2018 and the first fiscal quarter for 2019. The total revenue for the first quarter of 2018 was $8.8 million, while the revenue skyrocketed by 186% percent for the same quarter for 2019, totaling $25.3 million. Gross profit increased from $3.1 million to $3.2 million.
Two areas where increases were not recorded were the gain/loss from operations and net income. For the operations, the gain was $151,443 in 2018 and there was a loss recorded for the first fiscal quarter of 2019 totaling $8.1 million. Meanwhile, the net income for 2018 at this time was $94,615 and the recorded net income for 2019 is at a loss of $8.2 million.
Both of the loss numbers are related to efforts for growth to meet the growing demand, which is a logical step at this point in the business plan. Efforts are underway to establish an office in China to begin handling international shipping, and plans are already being put into effect for growth within the U.S.
The company’s CEO acknowledged struggles that impeded certain numbers for the company this quarter, especially certain shipping issues that increased costs. With the new initiatives the company has implemented, the CEO said the growth margins are expected to turn around significantly by the end of the next quarter.
Demand is currently noted as the company’s biggest problem. Therefore, with moves made to meet said demand, the company’s revenue and related numbers should be increasing again as expected.