Los Angeles, July 21, 2021 (GLOBE NEWSWIRE) -- via NetworkWire – Cannabis Strategic Ventures (OTCQB:NUGS) (“NUGS” or the “Company”), an emerging leader in the U.S. cannabis marketplace, is pleased to announce the filing of the Company’s 2020 unaudited financial performance data, closing the books on a momentous year of material growth that featured strong expansion in business activity, as well as robust gains in both top - and bottom-line metrics.
Financial Highlights for Fiscal Year Ended Dec 31, 2020 (unaudited)
- Consolidated Revenue was $14.6 million, representing an increase of 517% compared to fiscal 2019
- Revenues derived from cannabis sales totaled $14.1 million, representing an increase of 975% compared to fiscal 2019
- Gross Profit totaled $2.78 million, representing an increase of 483% compared to fiscal 2019
- Gross Margins maintained at approximately 20% across sales
“2020 was a defining year for NUGS, as we pushed into a higher gear in terms of commercial activity and market positioning despite the unusual challenges of the global pandemic health crisis,” commented Simon Yu, CEO of Cannabis Strategic Ventures. “We were able to fend off any drop in margins. However, we see operating expenses as an area of potential improvement and we are working to improve production processes and input sourcing contracts as we scale up production over coming quarters.”
Management notes that the Company made significant gains in product quality, production scale, and distribution relationships over the course of the year in 2020 without sacrificing ground in gross margins, which is a positive sign about scaling operations further in 2021 and beyond.
In addition, progress made in 2020 came in the face of many unusual challenges related to the Covid-19 pandemic, which is an encouraging sign about the quality of personnel changes made early in the year. As the Company looks ahead, the focus will continue to be on expansion in sales driven by improved product quality and a wider network of distribution relationships.
Yu added, “It is important to note that we had set a stretch target goal of $5 million in 2020 sales at the start of the year. We basically tripled that result, and did so with accelerating momentum, improving unit economics, and better market positioning as the year progressed.”
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About Cannabis Strategic Ventures
Cannabis Strategic Ventures Inc. (OTC: NUGS) is one of the largest publicly traded marijuana cultivators in the United States. The Company is Los Angeles-based and incubates, develops and partners with category leaders within the cannabis and ancillary sectors. The Firm's NUGS brand experience provides operational and financial strategic partnerships and a range of essential services to emerging and existing Cannabis consumer brands.
For more information, visit http://www.CannabisStrategic.com
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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Source: Cannabis Strategic Ventures, Inc.
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