Sugarmade Announces June Performance, Record Growth in Every Metric, Annualized Sales Pass $6M

NEW YORK, July 01, 2020 (GLOBE NEWSWIRE) -- via NetworkWire – Sugarmade, Inc. (OTCQB:SGMD) (“Sugarmade”, “SGMD”, or the “Company”), and its BudCars Cannabis Delivery Service (“BudCars”), is pleased to provide current and prospective shareholders with BudCars performance data for the month of June, which featured over $500K in total sales, representing 36% sequential monthly top-line growth, with total sales and profits now growing by more than 30% m/m for the third consecutive month.

• Total June BudCars Sales of $502,903, representing 36% month-over-month Sales growth (compared to May 2020 sales of $367K)
• Total June BudCars Gross Profits of $228K, representing 31% month-over-month Gross Profit growth (compared to May 2020 Gross Profits of $174K)
• Average Daily Sales increased 41% m/m to $16,763
• Total Customer Tickets increased 34% m/m to 4,207, accelerating from 29% m/m growth in May
• Average Customer Order size increased 2.0% to $119.54/order

“June was another breakout month for BudCars growth across basically every single metric important to gauging our progress,” stated Jimmy Chan, CEO of Sugarmade. “Our pricing improved. Our average order improved. We did more business with more people and booked a significant jump in gross profits while holding our 47% gross margin level as volume increased. We look forward to continued breakout growth in July.”

The Company continues to see broad and rapid expansion that closes out the first half of 2020 with a linear pace already at $6 million in annualized run-rate for sales, and a second-derivative path pointing to an annualized revenue path above $21 million by year-end. This includes data-driven projections for its Sacramento hub only. The Company continues to believe this data provides meaningful insights for projecting performance at its Los Angeles hub following launch, which should contribute to significant further upside in second half 2020 financial performance projections.

Management also believes verticalization is a very promising avenue through which to sharply widen margins based on its current analysis. The Company has already moved to secure some cultivation and manufacturing capacity, and management is targeting additional license and production capacity acquisitions in the months ahead.

Chan continued, “As we recently outlined, the California cannabis landscape is ripe for consolidation of dormant distressed production assets, which plays powerfully into our verticalization vision. And we look forward to providing further updates on our progress in this direction in the very near future.”