HempFusion Announces Preliminary Annual and Q4 2021 Results

HempFusion Announces Preliminary Annual and Q4 2021 Results
CANNANNEW REPORT

Q4 2021 net revenue increased by 66% year-over-year DENVER–(BUSINESS WIRE)–HempFusion Wellness Inc. (TSX:CBD.U) (OTCQB:CBDHF) (FWB:8OO) (“HempFusion” or the “Company”), a leading health and wellness Company offering premium probiotic supplements and products containing CBD, announces its preliminary and unaudited Q4 and Annual 2021 results. Fourth Quarter 2021 Business and Unaudited Financial Highlights: Q4 2021 net revenue of $3.7 million increased approximately 66% over Q4 2020 pro-forma net revenue of $2.2 million and 19% versus Q3 2021. Gross Profit was $1.6 million or 43% of net revenue in Q4 unchanged from the prior quarter, representing no decline even though rising production and material costs were experienced. After quarter end, the Company implemented a strategic price increase that is expected to drive gross margins directionally towards its goal of 50% or greater for 2022. Cost savings initiatives announced during the quarter helped reduce operating expenses by over $1.1 million. The quarter included only a partial impact from recent cost savings initiatives, and the Company now expects its ongoing efficiency efforts will drive at least a $6 million reduction in operating expenses in 2022 versus prior expectations of $4 million. 2021 Preliminary and Unaudited Annual Results: 2021 net revenue of $9.1 million increased 36% over the prior year. Including the impact of acquisitions, consolidated pro-forma net revenue for 2021 was $12.1 million. Preliminary gross profit margin for 2021 more than doubled from 16% to 36%, mainly due to the addition of the higher margin acquisitions. Prelim operating expenses for the year increased 12% on a pro-forma basis. Cost savings initiatives implemented late in Q4 resulted in a 15% OPEX reduction during the quarter with cost savings expected to carry into 2022 and beyond. Other Key Highlights: Due to Organic expansion and through the Acquisition, the Company and its family of brands can be found…

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