Oct 14 (Reuters) - U.S. cannabis producer cbdMD Inc said on Wednesday it expects full-year sales to double as it saw heavy demand from consumers turning to pot for recreation and relaxation during the COVID-19 pandemic.
The company, which makes cannabis-based gummies, tinctures and pet products, said it was on track to turn profitable this year, a key milestone in an industry plagued by high costs and regulatory issues.
Focus on online, direct-to-consumer sales helped boost revenue during virus-led lockdowns even as expenses were kept lower than rivals, many of whom went after big-box retailers, cbdMD’s chief executive Marty Sumichrast told Reuters.
“Buyer habits have changed with COVID-19, there’s a lot more online buying, and that proved the case with us,” Sumichrast said.
“We saw our direct-to-consumer business really explode and now we’re up to over 70% of our total sales from that channel, compared to less than 60% pre-pandemic.”
The Charlotte, North Carolina-based company expects to report net sales revenue of between $41.7 million and $41.8 million for the fiscal year 2020 ending September, around 76% higher than fiscal 2019. (Reporting by Shariq Khan in Bengaluru; Editing by Ramakrishnan M.)