Love Hemp Group PLC (AQSE:LIFE, OTCQB:WRHLF) said full-year revenues are slightly ahead of management expectations after securing two new major retail listings and enjoying stronger sales in the fourth quarter.
The branded CBD specialist said in a statement it also made a “significant” reduction in operational and board costs in the second half of the year, following a review announced in late March.
With all 34 of its products included in the UK Food Standard Agency’s novel foods register, Love Hemp said it is “taking aggressive steps to capitalise on the opportunity”.
A new head of digital commerce has been appointed to ginger up what have been a slow level of direct-to-consumer (DTC) sales via the company's own websites, lovehemp.com and cbdoilsuk.com.
The company said its board believes “the combination of new DTC initiatives and the inclusion of Love Hemp products on the novel food register will open the door for many further retail opportunities, increasing sales and building brand equity”.
Revenues in the year to 30 June came in at £3.6mln, which was down 16% from the year before, though unit sales volumes were up 19% to just under 234,000.
Sales in the second half of the year were up 11% on the first, while the fourth quarter saw a 15% increase year on year to £0.97mln.
Chief executive Tony Calamita hailed the record level of unit sales and the further expansion of the sales distribution footprint into major retail stores.
“This has been achieved whilst undertaking a significant operational review and I am confident this growth will continue,” he said.
“The company plans to make Love Hemp more visible internationally and sales overseas provides a significant opportunity in the future. We are a dynamic and passionate brand that after some challenges is once again on a growth curve with the most powerful and influential brand partnerships in the sector. Now it is our time to really capitalise on the opportunity."