Stem Holdings dba Driven by Stem’s gross sales were 104% higher for the quarter than a year ago.
In a press release, Stem Holdings Inc. announced dba Driven by Stem (STEM: CSE; STMH: OTCQX) its financial results for the third quarter of FY21, highlighting that revenue was an all-time high for the period.
“We are expanding our presence with a continued strong focus on cost reduction, operational excellence, and customer acquisition and retention to deliver top sales and improved margins as we did this quarter,” said CEO Adam Berk in the press release.
Stem’s gross sales for the third quarter of FY21 were $ 12.4 million ($ 12.4 million), a 104% increase over the previous year (YOY) of $ 6.1 million. Net sales were $ 10.6 million, an increase of 103% year over year to $ 5.2 million.
Total pharmacy sales during the quarter also increased 19% year over year, driven by efforts to improve customer service, the press release said. During the quarter, Stem launched its Budee delivery platform in Portland, Oregon, which likely contributed to the 7% year-over-year increase in sales in that state.
Stem’s gross margin for the quarter was 14%, down 34% year over year.
This decrease is due to a recategorization of the costs for driven supplies, in which the company has reclassified them from general and administrative costs to the cost of the goods sold. Had Stem not made this accounting change, its quarterly gross margin would have been 41.8%, reflecting a year-over-year increase.
Looking ahead, some of Stem’s near-term goals are to continue rolling out Budee in Oregon to serve most of the state, beginning with Eugene in October 2021. Also, Budee in California is expected to continue to gain market share. The debut of Stem’s first pharmacy delivered by Budee in Michigan is slated for next month, September.
Stem also plans to expand its cannabis cultivation, particularly on its farms in Mulino and Springfield, Oregon. The company is developing new core and new genetics at all of its five Oregon locations.
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