Busy Love Hemp sees results improve on back of sporting endorsements
Specialist CBD products and beauty retailer Love Hemp Group has had a busy year restructuring and bedding in a new management team. So you may think that would have hit performance for the year ended 30 June.
Not so. The CBD and hemp-based wellbeing and skincare producer/retailer, delivered a strong rise in revenues, to £4.33 million, compared to FY20 revenues of £2.69 million.
Meanwhile, gross profit of £1.25 million topped £0.96 million made a year ago. And there was still a positive cash balance of £925,000, despite “significant marketing investment”.
And that marketing initiative, with its strong sporting theme, delivered a 35% increase in November orders from new customers, it noted.
Sports-related signings included a three-year endorsement agreement with former world heavyweight boxing champion Anthony Joshua who also headlined a major TV, print and outdoor advertising campaign in November.
Love Hemp also signed a multi-year exclusive licensing agreement with the Ultimate Fighting Championship body (with an opportunity to develop a licensed range of UFC CBD products), and a sponsorship and influencer agreement with Kamaru Usman, current UFC Welterweight Champion.
Other positive moves for the company, which is preparing to move from the Aquis Stock Exchange to the London Stock Exchange’s main market, included increased orders from major UK retailers Boots and Holland & Barrett, with related revenues increasing 65%, along with an increase in orders from its own online platform.
Meanwhile, a week of Black Friday promotions in late November, reduced from a previous month-long promotion, increased monthly revenue by 150% and 228% on September 2021 and October 2021 respectively, it also noted.
The company also acquired new premises with capacity to manufacture up to 500,000 units of CBD products monthly.
CEO Tony Calamita said: "Love Hemp Group has undergone major [corporate] changes during the period. These… have been made alongside delivering growth in revenue, attracting new customers, developing new retail relationships and securing partnerships with leading organisations and individuals.”
He added that the next phase of its development “is focused on building brand visibility and loyalty and creating a distinctive position for Love Hemp in the burgeoning CBD wellness sector.
“We have moved away from regular discounting and will be implementing new marketing initiatives in the New Year to drive value. We have already seen the positive impact of this change in our Black Friday sale.”
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