One of the cannabis companies which had a remarkably bad time in 2019 was KushCo Holdings (OTC:KSHB), and it seems that the company’s troubles are not over yet. Health-related panic about vaping had hit KushCo pretty hard last year, and this past Wednesday, the company announced its fiscal second-quarter results following the closure of markets.
The company is also facing troubles from the mayhem unleashed by the coronavirus pandemic. Here is a look at some of the highlights from the company’s fiscal second-quarter results for 2020.
In the second quarter, the company’s net revenues came in at $30.14 million, which reflects a year on year fall of 14%. While that piled on the misery for KushCo, it should be noted that the figure scraped past analysts’ estimates of $30.13 million. The losses widened significantly to $44.4 million for the quarter, which worked out to losses $0.40 a share. In the year-ago period, the company’s net losses stood at $8.9 million, which worked out to losses of $0.10 per share, and that reflects a major rise in the company’s losses. The decline in the vaping business has been cited as one of the key reasons behind the loss.
In November last year, the company had launched its hemp trading business, but until now, it has not been able to boost its earnings. KushCo also has a considerable presence in California, and despite the state declaring cannabis as essential business, its sales took a hit as more people ordered the product. One of the brighter points from the earnings report was that the company managed to boost its sales in some of its markets. Sales rose in Michigan, Massachusetts, Canada, and Illinois. The company’s Chief Executive Officer stated that investors could accept more stable revenues in the coming quarters and went on to say that KushCo could also produce positive EBITDA earnings soon.