Kush Bottles, a supplier of packaging supplies, accessories, and branding solutions for the legal cannabis industry, reported financial results for its fiscal year ended 31 August 2016.
Fiscal Year 2016 Financial Highlights
Kush Bottles achieved record revenue of $8,215,452 in fiscal year 2016, representing year-over-year growth of 105%.Kush Bottles achieved record operating income of $84,455, representing year-over-year growth of 124%.Working capital surplus grew to $2,026,777, representing a year-over-year increase of 877%.Operating expenses as a percentage of revenue was 32%, representing a year-over-year decrease of 12%.Revenues in our core markets of California, Colorado, Oregon, and Washington were $7,678,888 in fiscal year 2016, representing year-over-year growth of 99%.Revenues in our non-core markets were $536,616 in fiscal year 2016, representing year-over-year growth of 228%.
Executive Quotes
"We are very pleased with the revenue growth we saw in all markets in 2016," said Nick Kovacevich, CEO of Kush Bottles. "We're excited to continue to push hard in these existing markets in 2017, and to take advantage of the many new markets that may emerge if more states vote to legalize."
"We are thrilled with our performance in 2016, and we are already executing on plans to build and invest for the future. Colorado, Washington, Oregon and Alaska are just the tip of the iceberg," said Ben Wu, President of Kush Bottles. "We are committed to continuous development of our organization and infrastructure to accommodate future market growth."
"We've really focused this past year on increasing the efficiency and scalability of the business and the reduction in our operating expenses as a percentage of revenue shows we are succeeding," said Chris Martin, CFO of Kush Bottles. "We plan to continue to create new efficiencies where possible so we can get more out of the resources we have."
"Technology has played an important role in making our business more scalable and it will continue to be an important part of our strategy going forward," said Ryan Selewicz, Director of Marketing & Technology at Kush Bottles. "Our online store is making ordering more convenient for our customers and it is making order processing more efficient for our team. Customers are responding well to this as we increased online transactions by more than 290% year-over-year and we've increased average online order value by more than 65% year-over-year."
