Q1 2025 cbdMD Inc Earnings Call Transcript
Key Points
- cbdMD Inc (YCBD) achieved positive net income and a positive non-GAAP adjusted EBITDA for the first time in company history.
- The company reported a sequential revenue growth over the fourth quarter, indicating a rebound in sales.
- Gross margins remained strong at 66%, showcasing the durability of the business model.
- The company successfully reduced SG&A expenses by focusing on payroll, professional fees, marketing fees, and eliminating the HQ lease.
- cbdMD Inc (YCBD) is debt-free after converting all remaining convertible notes to common stock, freeing up cash for working capital.
- Total net sales for the first quarter of fiscal 2025 decreased by 5% compared to the prior year quarter.
- E-commerce sales, which represent a significant portion of total sales, saw a 10% year-over-year decrease.
- The wholesale margin for the new Oasis social tonic line is expected to be lower than other wholesale products.
- The company anticipates slight increases in operating costs related to warehouse and office lease extensions and marketing expenses.
- The capital structure remains a challenge, with a proposal for converting Series A preferred shares to common stock still pending shareholder approval.
Good afternoon. Welcome to the cbdMD Inc. 30th December 2024, fiscal first fiscal quarter and 2025 earnings call and update. This afternoon, the company issued a press release that provided an overview of its first fiscal results.
First, pardon me, first fiscal quarter results, which followed the filing of its quarterly report on Form 10Q. Today's conference call is being recorded and will be available online along with our earning press release covering our financial results and non-GA non-gap presentation at cbdMD.com in accordance with CBDMD's retention policies. All participants on this call will be in a listen-only mode. The call will be followed by a question and answer session. At that time, I would like to, at this time, I'd like to turn the conference over to Brad Whitford, the company's Chief Accounting Officer. Brad, please go ahead.
Thank you, Gayan, and thank you all for joining cbdMD's December 31, 2024, 1st quarter of fiscal 2025 earnings call and update. On the call today, we also
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