UK CBD brand Love Hemp expects to at least double annual revenues to £8.6m+ this financial year after a bumper 12 months of online and High Street sales.
Love Hemp plc saw sales surge 60 per cent to £4.31m in 2020/21 driven, in part, by wider consumer recognition of its brand, maturing of online platforms and an increased presence in retail outlets.
It now expects further strong growth this year amid its launch on Amazon in Q1 2022, a new subscription model and overseas expansion in the US, Europe and Japan.
Orders from major UK retailers
Units sold in 2020/21 increased by 244 per cent year-on-year to 188,865, with third party retail representing 41 per cent of total revenue.
In October 2020, the firm secured large orders from major UK retailers, Boots and Holland & Barrett; which saw the company gaining a stronger revenue of £2.38m in H1 2021, compared to £1.93m in H2.
Its products are now sold in 198 Boots stores and 838 Holland & Barrett outlets across the UK, with distributors including Ocado, Alliance Healthcare Distribution Ltd and CLF Distribution, totalling more than 2,000 stores.
Sales from the company’s own online channels, lovehemp.com and cbdoilsuk.com, grew by 17 per cent on the previous year, and represented 59 per cent of total revenue for the period.
The company expects these revenue streams to evolve further as sales via online channel partners such as Amazon, which are due to come online in the first quarter of 2022, and from its online channels in line with its move to a subscription based model.
A further growth contributor is its high profile marketing campaigns in partnership with Anthony Joshua.
CEO Tony Calamita said: “The record revenue we have seen in the financial year 2021 is an endorsement of the growing strength and visibility of Love Hemp, which has grown in line with the burgeoning consumer interest in high-quality CBD products in the UK.
“This consumer demand and trust in our products is increasingly being reflected in major high-street retailers seeking to stock Love Hemp products to enrich their wellness offerings, where we have seen our shelf presence double in FY21.
“During the year, we saw a 236 per cent increase in third party retail sales and a 56 per cent increase in units sold through our high street stockists, including Boots and Holland & Barrett.
“Our multi-channel approach to sales resulted in increased online sales and consumer accounts. Our online distribution network and the revenue streams emanating from it are expected to increase significantly in FY22 as we launch new online channel partners, including Amazon.”
The company’s revenue continues to be UK centric, however, this is expected to change as it pursues its large-scale international growth strategy.
During the period, the company has raised over £10m in equity which will be invested in targeting new geographies including the US, Europe and Japan; as well as brand expansion via partnerships with the aforementioned Anthony Joshua and the Ultimate Fighting Championship.
Calamita added: “Love Hemp is well positioned to benefit from the growing consumer appetite for CBD wellness products in the UK, and we look forward to launching our first major marketing campaign ahead of Christmas in partnership with Anthony Joshua. In addition to growth in the UK market, we have spent the year preparing for our launch into new geographies, including the US.
“The US CBD market is considerably larger than the UK and will therefore be transformational for Love Hemp. Our growth strategy puts us on a trajectory to at least double our revenue in FY22.”