NEW YORK, Nov. 12, 2019 (GLOBE NEWSWIRE) -- via NetworkWire – Sugarmade, Inc. (SGMD) (“Sugarmade”, “SGMD”, or the “Company”), a major supplier to the hydroponic cultivation and hemp sectors, is pleased to provide full financial performance data for its recent acquisition, BZRTH, LLC (“BZRTH”), a leading hydroponics ecommerce supplier. Data for the six months ended June 30, 2019, reveal net profitability on sales exceeding $15 million, representing 25% revenue growth on a sequential six-month period basis.
Jimmy Chan, CEO of Sugarmade, commented, “We are very happy to present our shareholders and current and prospective investors with a quantitative overview of the financial performance we are integrating as we assimilate BZRTH into Sugarmade. If any doubts remained about the strategic merits of this transaction, hopefully they will be soundly put to bed by the top and bottom line performance we are revealing today.”
BZRTH Financial Data Highlights for the Six Months Ended June 30, 2019:
- Total Sales above $15 million
- Gross Profit above $5 million
- Sequential Decline in Cost of Goods Sold as a Percent of Total Sales
- Overall Sales growth of 25% Sequentially
- Net Profitability generating Net Income of $749K
Management notes that the powerful positive trends in both growth rate and operational efficiency, as well as the nominal scale of operations, define an extremely desirable trajectory as BZRTH assets are integrated into Sugarmade operations. The Company also believes that inherent synergies between the two companies will capture and improve upon BZRTH standalone trends in the quarters ahead.
“BZRTH fits into Sugarmade like a hand in a glove,” continued Mr. Chan. “We didn’t just buy ourselves $37 million in forward sales. We bought ourselves a ton of synergy that will elevate the impact of everything we do. Moreover, this data represents a strong affirmation of our core strategic thesis: the center of gravity in terms of overall growth in the hemp and hemp-related boom has shifted from primary producers to ancillary industries that enable greater productive efficiency, with hydroponics sitting right at the heart of that dynamic. With this acquisition, Sugarmade has now assumed a central leadership position in that ascendant theme.”
The Company plans to release further BZRTH financial data for quarter ended September 30, 2019 along with projections for current quarter performance in the very near future.
About Sugarmade, Inc.
Sugarmade, Inc. (SGMD) is a product and branding marketing company investing in operations and technologies with disruptive potential. The Company is becoming a leading supplier to the growing hemp industry and is benefitting from the growth of the hydroponic marketplace. The Company is in the process of acquiring several leading hydroponic and agricultural supply companies that are currently producing in excess of $70 million in annual revenues. Sugarmade is also an investor in fast growing Hempistry, Inc., a Kentucky-based and operates Carryoutsupplies.com a leader provider to the quick service restaurant industry.
FORWARD-LOOKING STATEMENTS: This release contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements also may be included in other publicly available documents issued by the Company and in oral statements made by our officers and representatives from time to time. These forward-looking statements are intended to provide management's current expectations or plans for our future operating and financial performance, based on assumptions currently believed to be valid. They can be identified by the use of words such as "anticipate," "intend," "plan," "goal," "seek," "believe," "project," "estimate," "expect," "strategy," "future," "likely," "may," "should," "would," "could," "will" and other words of similar meaning in connection with a discussion of future operating or financial performance. Examples of forward looking statements include, among others, statements relating to future sales, earnings, cash flows, results of operations, uses of cash and other measures of financial performance.
Because forward-looking statements relate to the future, they are subject to inherent risks, uncertainties and other factors that may cause the Company's actual results and financial condition to differ materially from those expressed or implied in the forward-looking statements. Such risks, uncertainties and other factors include, among others. such as, but not limited to economic conditions, changes in the laws or regulations, demand for products and services of the company, the effects of competition and other factors that could cause actual results to differ materially from those projected or represented in the forward looking statements.
Any forward-looking information provided in this release should be considered with these factors in mind. We assume no obligation to update any forward-looking statements contained in this report.
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