- Projections for U.S. retail sales of medical, recreational cannabis on pace to reach $15 billion by end of 2020
- SGMD seeing consistent growth in numbers, supporting expert predictions
- CEO reports “increase in gross margins while demonstrating another breakout month-over-month performance on both the top and bottom line”
Even with the global COVID-19 pandemic causing a speed bump, projections for the retail sales of medical and recreational cannabis in the United states are on pace to reach $15 billion by the end of 2020 (https://ibn.fm/tqh6O). Those numbers, which are an increase of approximately 40% over 2019 sales figures, may not surprise Sugarmade (OTC: SGMD), which has consistently reported record numbers as it builds operations in the California cannabis space.
“Total U.S. sales could rise as high as $37 billion by 2024, according to exclusive projections from the latest Factbook, which was released Monday at MJBizConNEXT Direct,” reported a recent Marijuana Business Daily article. Despite the “huge curveball” that the coronavirus pandemic, threw at projections, the article went on to note that “spending on adult-use cannabis in markets that aren’t tourist-driven has increased, as have sales in nearly every domestic MMJ market.”
The report concluded that despite short-term uncertainty, the long-term potential of the cannabis industry remains intact. “Sharp sales increases in recently launched medical marijuana programs — as well as continued gains in adult-use markets — are expected to fuel much of the industry’s growth over the coming years.”
Recent financial reports from Sugarmade seem to confirm these projects. In its most recent numbers report, the company noted that gross sales for its BudCars Cannabis Delivery Service totaled $662,836, representing 32% month-over-month sales growth compared to June 2020 sales (https://ibn.fm/wuuTf). In addition, average daily gross sales increased 32% month-over month to $22,095, with total customer tickets increasing 33% month over month. In short, SGMD’s calendar Q3 is on pace to potentially more than double its calendar Q2 total BudCars sales.
“Last month featured strong growth in basically every major metric once again for our BudCars segment. We saw an increase in gross margins while demonstrating another breakout month-over-month performance on both the top and bottom line,” said Sugarmade CEO Jimmy Chan. “Note that April was our first full month operating BudCars. In July we more than doubled the sales and gross profits booked in April. That pace of growth suggests another potential doubling by October on a per-location basis. And we will be operating additional locations by then, which will serve to compound that growth.”
BudCars is a retail business that offers same-day delivery of top-quality cannabis. Customers choose from a variety of products including edibles, flower, pre-rolls, vapes, tinctures and concentrate across dozens of premium brands. Once consumers complete their purchases online, they receive their order the same day via BudCars Cannabis Delivery Service.
Sugarmade Inc. is a product and branding marketing company investing in operations and technologies with disruptive potential. In addition to its financial interest in the BudCars brand, SGMD’s brand portfolio includes CarryOutsupplies.com and SugarRush(TM).
For more information, visit the company’s website at www.Sugarmade.com.
NOTE TO INVESTORS: The latest news and updates relating to SGMD are available in the company’s newsroom at http://ibn.fm/SUGAR
