YOOMA Wellness saw revenues decline in its third quarter but managed to taper losses as it continued to buy up international CBD and wellness brands at pace.
The young company, which launched its international sales platform in late 2020, reported revenues of $2.13m in the three months to September 2021.
This represented a slight dip in sales compared to the $2.17m it posted in the preceding quarter.
Despite gross profits more than doubling from $242,708 in Q2 to $560,107, Yooma saw net losses top $2.6m during the period, down from $3.1m.
The ongoing losses were attributed to a $3.2m cost ‘relating primarily to the integration of previously acquired businesses’, alongside further expenses ‘incurred in connection with capital raising activities and the AQSE dual-listing’ which took place during the quarter.
Largest Capital Raise
Yooma successfully launched a public listing on the Aquis Growth Market on August 10, 2021, raising $10.3m in the process.
The listing was reportedly the AQSE’s fourth largest listing of 2021 and marked the largest ever capital raise for a cannabis company on the platform, helped by ‘strong support’ from institutional cannabis investor Seed Innovations.
Though the company’s shares have dipped some 6.4% since listing, it retains a market capitalisation of over £50m.
Following the capital raise, Yooma said it would use the proceeds to ‘finance the cash portion of several strategic acquisitions’ and begin implementing its buy-and-build strategy.
The first of these acquisitions was completed just weeks later on August 20, seeing Yooma purchase Birmingham-based Vitality CBD for £10.2m.
Vitality CBD Purchase
Last month, Yooma announced that it has struck a deal with UK supermarket ASDA to stock 17 of Vitality’s products in 300 of its stores, representing a ‘quick return on investment that our buy-and-build strategy has created’, according to its CEO Jordan Greenberg.
Yooma expects the integration of Vitality and other acquisitions including speciality drinks brand Big Swig and Tokyo-based Vertex, completed post-period, to begin driving significant growth in the coming quarter.
In Q4 Yooma is forecasting revenues of over $5m, equating to an annualised run rate for 2022 of $20.3m, which it says will be bolstered by ‘new sales channels’ gained through its ongoing acquisition strategy.
Yooma’s chairman Lorne Abony said: “Based on actual revenue achieved in the third quarter of US$2.1 million, with only partial revenue contribution so far from key strategic acquisitions acquired during the quarter and subsequent to quarter-end, we believe that Yooma is significantly undervalued compared to its public competitors.”
Main Image: Yooma brand Vitality CBD
