Sugarmade
Estimates
First
LA
BudCars
Hub
to
Add
More Than
$20
Million
in
Annualized
Sales
NEW YORK, NY -- June 16, 2020 -- InvestorsHub NewsWire
-- Sugarmade,
Inc. (OTCQB:SGMD)
("Sugarmade", "SGMD", or the "Company"),
and
its BudCars
Cannabis
Delivery Service ("BudCars"),
is
excited to announce record
growth in
gross profits and gross profit margins for
BudCars
sales
during the month of May
(up
46% on a sequential month-over-month basis),
and
continued strong
signals so far during the first half of June, with gross profits
growing 9.9% on a week-over-week basis.
The Company believes this performance data provides a template for
its per unit operational performance anticipated as it gears up to
launch its first Los Angeles hub next month. The
Los Angeles cannabis market is arguably the biggest municipal legal
cannabis market in the world, and the Company conservatively
estimates that its first LA hub will add at least $20 million in
annualized sales,
with a similar anticipated gross margin profile.
"As we gear up to open our first new hub in the Los Angeles
regional market, we continue to see very good signs from our
Sacramento hub, with the very rapid topline growth clearly
translating to the bottom line as margins
hold
up and
even improve,"
commented Jimmy
Chan, CEO of Sugarmade. "As
we recently reiterated, BudCars
is
not a delivery business comparable to GrubHub
or
Uber Eats. It is a top cannabis retail business with
very
consistent 46-52% gross
margins on a wholesale inventory with very secure
logistical
underpinnings. This differentiation has been a source of
misunderstanding, and it is critical to fully appreciating our
value proposition and our strategy as a Company moving
forward."
Management notes that May was the Company's best month on record as
far as total gross profits since taking operational control
of BudCars,
a mark that looks certain to be surpassed
by
the Company's performance in June, as growth in sales and gross
profits continues to race ahead at approximately 10% on a
week-over-week
basis.
As noted in the Company's June 4 press release, BudCars
will
surpass $10 million in annualized sales by the month of August at
its Sacramento location provided
the Company maintains its current pace of growth.
In addition, management believes that performance seen at
the
BudCars
Sacramento
hub
provides
a strong basis for understanding key dynamics that will shape
operational performance at the Company's initial southern
California BudCars
hub,
as
the
Company moves
toward the opening
of its
first Los Angeles location.
About
Sugarmade, Inc.
Sugarmade, Inc. (OTCQB:
SGMD) is a product and branding marketing company investing in
operations and technologies with disruptive potential. Our Brand
portfolio includes CarryOutsupplies.com, SugarRush™
and Budcars.com. For more information please reference
www.Sugarmade.com.
FORWARD-LOOKING STATEMENTS: This release contains "forward-looking
statements" within the meaning of the safe harbor provisions of the
U.S. Private Securities Litigation Reform Act of 1995.
Forward-looking statements also may be included in other publicly
available documents issued by the Company and in oral statements
made by our officers and representatives from time to time. These
forward-looking statements are intended to provide management's
current expectations or plans for our future operating and
financial performance, based on assumptions currently believed to
be valid. They can
be identified by the use of words such as "anticipate," "intend,"
"plan," "goal," "seek," "believe," "project," "estimate," "expect,"
"strategy," "future," "likely," "may," "should," "would," "could,"
"will" and other words of similar meaning in connection with a
discussion of future operating or financial performance. Examples
of forward
looking statements
include, among others, statements relating to future sales,
earnings, cash flows, results of operations, uses of cash and other
measures of financial performance.
Because forward-looking statements relate to the future, they are
subject to inherent risks, uncertainties and other factors that may
cause the Company's actual results and financial condition to
differ materially from those expressed or implied in the
forward-looking statements. Such risks, uncertainties and other
factors include, among others. such as, but not limited to economic
conditions, changes in the laws or regulations, demand for products
and services of the company, the effects of competition and other
factors that could cause actual results to differ materially from
those projected or represented in the forward looking
statements.
Any forward-looking information provided in this release should be
considered with these factors in mind. We assume no obligation to
update any forward-looking statements contained in this
report.
Corporate
Contact:
Jimmy Chan
+1-(888)-982-1628
info@Sugarmade.com