Humble & Fume Inc. (OTCQX:HUMBF) (CSE:HMBL) revenue for the third quarter fiscal 2022 was $16 million, compared to $19 million in the same quarter prior year.
Q3 Fiscal 2022 Financial Highlights
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In the third quarter, gross profit was $3 million, which resulted in a gross margin of 20%, compared to $3 million, or a gross margin of 14%, year-over-year. The increase in gross profit margin is primarily due increased controls on discounting, focus on higher margin sales plus favorable inventory provision adjustment.
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Operating loss for the quarter decreased to $2 million from $3 million compared to the same period in the prior year. The decrease in operating loss was driven primarily by increased gross margin.
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Net losses for the quarter decreased from $6 million to $3 million compared to the same period in the prior year. The decrease in net losses was primarily driven by the decrease in accretion expense on the convertible debentures issued May 2019 and exercised on June 14, 2021, resulting in conversion of the debt to share capital.
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Adjusted EBITDA for the quarter was ($1) million, compared to ($2) million for the same period in the prior year. The improvement was driven primarily by increased gross margin.
Joel Toguri, CEO of Humble, stated, "We are laser-focused on cost-cutting, optimizing the business, improving on our end-to-end customer experience, and aggressively pursuing expansion opportunities in the US. Our commitment to right-sizing the business has resulted in faster turnaround times, improved accuracy in our fulfillment and a meaningful reduction in our inventory. We have made significant improvements to our cost base while stabilizing revenue and improving gross margins."
Other Highlights
March 2022 - Humble Cannabis Solutions officially launched operations in California as a premier cannabis sales, distribution, and field marketing company.
April 2022 – The company formed HC Solutions Holdings Inc., a joint venture with Green Acre Capital Distribution Corp., for the purpose of distribution of cannabis throughout the United States, initially focused on accelerating the company's expansion into cannabis distribution operations in California.
April 2022 – Humble Cannabis Solutions California entered into an exclusive distribution service agreement with Canndescent Brands, for the sale and distribution of all its product lines.
April 2022 – Humble Cannabis Solutions California entered into an exclusive sales agreement with LEUNE.
May 2022 – In Canada, the company entered into an exclusive distribution service agreement with Molecule for its line of quality craft beverages.
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