CLS Holdings USA (CSE:CLSH, OTCQB:CLSH) Inc has announced a strong start to the year with the release of financial and operational results for its Nevada wholly-owned subsidiaries for January and February 2022.
Despite decreasing overall retail numbers in the state of Nevada, BDS Analytics data for January 2022 cast a bright spotlight on CLS' branded division, City Trees, which saw total retail sales of $1.05 million versus $340,000 for January 2021, demonstrating a 195.5% increase year-on-year (YOY) and a 205% increase over 2020.
City Trees total units sold were up almost 50% YOY and the brand boasted a 6.2% brand share by units sold and 6.3% brand share by dollars sold within the entire cannabis market in Nevada.
READ: CLS Holdings USA says Nevada subsidiaries generated $1.75M in revenue during January
The company said that City Trees' overall performance continues to position the brand at the second position in the overall concentrate category in Nevada and as the first position in tincture brand in the state, according to BDS Analytics.
City Trees' overall performance continues to position the brand at #2 in the overall concentrate category in Nevada and as the #1 tincture brand in the state, according to BDS Analytics, CLS said, adding that it is important to note that all the growth and success has happened organically, from investing within and expanding the brand without any acquisitions.
CLS earned just under $2 million in net revenue during February 2022 which represented a 32% increase YOY and a 72% increase from 2020.
The wholesale branded division at City Trees continued to show accelerated growth with net revenues of $812,000 during February 2022 with an increase of 122% YOY and a 205% increase from 2020.
The company continued to achieve its goal of a greater than 50% gross profit margin during February, 2022, achieving 55% for the month of February.
CLS's retail division, Oasis, attained a 53% gross profit margin during February 2022, while the branded wholesale division at City Trees maintained a 57% gross profit margin.
City Trees saw total units sold for January 2022 up 47.8% from the comparable month of the previous year. During January 2022, City Trees brand share was 6.3% of the entire cannabis market in the state of Nevada, the company said.
CLS said it will be holding its first-ever quarterly investor call this April.
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