Home > Boards > Free Zone > User's Groups > $tacks Upon $tacks Of Moolah (STAX)

$SGMD revs expected to exceed initial projections:

Public Reply | Private Reply | Keep | Last ReadPost New MsgNext 10 | Previous | Next
TradeForProfits Member Profile
Member Level 
Followed By 836
Posts 80,197
Boards Moderated 5
Alias Born 01/09/06
160x600 placeholder
Boeing-FAA Ties Still Flawed After 737 MAX Reforms
U.S. aviation regulators need to strengthen their oversight of aircraft safety even after reforms undertaken in the wake of the two Boeing Co. 737 MAX crashes that claimed 346 lives, a government report has concluded.
Republican Senators Send Letter to Jeff Bezos Asking Why Amazon Pulled Book by Conservative Author
Facebook, Google Face 'Strong Pipeline' of Privacy Rulings in Europe
Top Company News of the Day
Graphics-Chip Maker Nvidia Lifts Revenue Amid Videogame Boom -- 3rd Update
Graphics-Chip Maker Nvidia Lifts Revenue Amid Videogame Boom -- 2nd Update
Federal Reserve Financial-Services Systems Disrupted for Hours -- 5th Update
Top Stories of the Day
Graphics-Chip Maker Nvidia Lifts Revenue Amid Videogame Boom -- Update
Graphic-Chips Maker Nvidia Lifts Revenue Amid Videogame Boom
Federal Reserve Financial-Services Systems Disrupted for Hours -- 4th Update
Dow Industrials Close at a Record--Update
Israeli Study Finds Pfizer Shot Equally Effective for Young and Old
Verizon Tops List of 5G Spectrum Bidders -- 2nd Update
Sycamore's Belk to Exit Bankruptcy Within One Day
Verizon Tops List of 5G Spectrum Bidders -- Update
Verizon Tops List of 5G Spectrum Bidders
Correction to Stocks End Wild Session Article on Feb. 23
Booking Holdings, Hit Hard by the Pandemic, Swings to 4Q Loss
Federal Reserve Financial-Services Systems Disrupted for Hours -- 3rd Update
Dow Industrials Close at a Record
Dow on Track for Closing Record
Wheat Rises on Global Winterkill Worries
Janssen Says ViiV Submits SNDA for Expanded Use of Cabenuva
TradeForProfits Member Level  Tuesday, 11/19/19 09:30:41 AM
Re: None
Post # of 219095 
$SGMD revs expected to exceed initial projections:

https://finance.yahoo.com/news/sugarmade-discusses-growing-cost-advantages-133000482.html

Sugarmade Discusses its Growing Cost Advantages in Hydroponics Supplies - Announces Strong Preliminary Results for Calendar 2019 Exceeding Internal Forecasts
GlobeNewswire GlobeNewswireNovember 19, 2019
NEW YORK, Nov. 19, 2019 (GLOBE NEWSWIRE) -- via NetworkWire – Sugarmade, Inc. (SGMD) (“Sugarmade”, “SGMD”, or the “Company”), a major supplier to the hydroponic cultivation and hemp sectors, today announces preliminary calendar year to date revenue performance of $26 million and strengthening gross margins. The Company is expecting its recently acquired hydroponics supply operation to produce approximately $32 million for the calendar year. Based on both growing revenues and an expanding sector cost advantage, the Company believes it is well-positioned moving into 2020.

“This business sector is all about robust product sourcing, efficiency in logistics and effective e-commerce programs, not to mention effective placement on Amazon, where we are realizing great success. Our revenue and gross margin production are testaments to the fine job our staff has done relative to these areas,” commented Chief Executive Officer, Jimmy Chan. “Our revenue for this calendar year, as well as our gross margins, have exceeded our internal forecasts. We are especially pleased with how gross margins have remained robust all year and have actually risen over the past few months, bucking the expected seasonal trend in this subsector of the agricultural supply industry. We believe we are especially well set up moving into 2020, with not only e-commerce, but also brand and logistical advantages over the competition.”

The Company’s online strategy, especially relating to placement on Amazon.com, has proven to be a significant success with the ipower and Simple Deluxe product lines now becoming “Best Seller” brands on the e-commerce site. Over the past year, the Company has continued to increase the number of its products available via the Amazon sales channel. As a result, the product lines now hold the Amazon “Best Rated in Greenhouse Ventilation Equipment.”

In addition, to growth via the Amazon channel, the operation has also been very successful via its own logistic, e-commerce, and fulfillment efforts. Management believes the Company now has a cost advantage by way of its 55,000-square-foot fulfillment center located in Irwindale, California. Located strategically along a logistics corridor, which directly connects to the Port of Long Beach, the Company is able to import and fulfill customer deliveries from a very low-cost position, especially relative to orders placed by the growing number of California-based customers. Internal Company analysis places this cost savings at an approximate 65% cost advantage compared to traditional warehousing and logistics structures.

The Company is extremely pleased with the seasonality trends relative to both revenues and gross margins. Despite a normal peak sales season in the agricultural sectors centering around late Spring as cultivators prepare for peak planting season, the Company has been able to maintain sequential monthly revenue growth over the past few months with revenue production for each of the months of October and November equaling or exceeding all other months, except for the expected peak planting month of May. Combined gross margins for the months of August, September and October at nearly 36% easily exceeded the average for the first seven months of the calendar year, reflecting both revenue strength and an increasingly favorable product mix of newly introduced products, which are increasingly being accepted by the Company’s customers.

The Company attributes much of the revenue growth and strong margin successes to its continually evolving online strategy and to its strong product sourcing capabilities. Mr. Chan continued, “Our online strategies have been on point all year, allowing us to keep customer acquisition costs in-line, while strongly growing revenues. We have also been highly successful in sourcing products. When products demanded by our customers could not be procured at reasonable prices, our staff innovated by initiating programs directly with manufacturers. These internally sourced products have been some of our best performers. We then utilize our considerable logistics operations to get these products into the hands of our customers. With a strong cost advantage, we have been able to keep our prices low, which has increased customer loyalty, allowing us to capture a growing market share at numerous important cultivators. We have now exceeded one of our long-term goals by surpassing the important $1,000,000 annual per-employee revenue market. We are looking forward to continued growth in 2020.”

Buy it, trade it, hold it, ignore it... do whatever your want, just
don't do it because of what I say as my posts are just my opinion.
Public Reply | Private Reply | Keep | Last ReadPost New MsgNext 10 | Previous | Next
Follow Board Follow Board Keyboard Shortcuts Report TOS Violation
X
Current Price
Change
Volume
Detailed Quote - Discussion Board
Intraday Chart
+/- to Watchlist
Consent Preferences