Cannabis branding company Hollister Biosciences Inc. (CSE:HOLL) (OTC:HSTRF) (FRANKFURT: HOB) reported its financial and operating results on Thursday for the second quarter of 2021, touting a significant growth in revenue which amounted to $17.6 million.
"Our second-quarter results demonstrate continued momentum to increase profitability as we focus on scale and expansion of higher-margin branded and finished products," Carl Saling, the company's CEO said. "We are very pleased with the operational and financial advances made so far in 2021 and look forward to continued growth in our core market and beyond."
Q2 2021 Financial Highlights
- Gross profit totaled $4.3 million, compared to $1.5 million in the second quarter of 2020 and $3.6 million in the first quarter of 2021.
- The gross profit margin was 25%, compared to 18% in the same quarter of last year and 16% in the previous period.
- Net income amounted to $1.6 million compared to $2 million in the first quarter of this fiscal year.
- Adjusted EBITDA in the second quarter came in positive at $3.2 million versus $2.8 million in the first three months of 2021.
Q2 2021 Operational Milestones
In April, the company entered into an exclusive partnership with Nabis, one of California's leading distributors, ahead of announcing that the Hollister, Easyriders collaboration officially launched its first product in the market with premium pre-roll packs in silver or black collectible tins featuring the iconic Easyriders logo available in dispensaries throughout California.
In May, Hollister and Heavy Grass teamed up with Slipknot co-founder Shawn "Clown" Crahan for special-edition HashBone packs featuring six half-gram pre-rolls and matches in a soft-touch matte black case.
Shortly after, the company launched the pre-roll production and distribution in Arizona to complement its existing cannabis concentrate product suite in the state through its wholly-owned Labtronix, Inc. subsidiary, which is doing business as Venom Extracts.
Hollister said it's targeting $70 million revenue for 2021, with a substantial revenue growth attributed to an increase in Venom branded product sales as well as an increase in Venom's white label business.
Price Action
Hollister Biosciences' shares traded 4.35% lower at $0.22 per share at the time of writing Thursday morning.
Photo: Courtesy of Yiorgos Ntrahas on Unsplash