Kushco Holdings Inc (OTCMKTS:KSHB) has reported a 177% surge in annual sales for the 2018 fiscal year. The management of the horizontally diversified company detailed its 2018 achievements in the report while giving projections on forthcoming expansion strategies.
KushCo Portfolio
KushCo operates a portfolio of companies with interests in diverse sectors including the Cannabis industry. Through Kush Bottles, the company supplies packaging and supplies equipment to licensed cannabis cultivators and producers. The company also supplies premium hydrocarbon gasses and solvents to cannabis-manufacturing companies through its Kush Energy subsidiary.
With a diversified stream of income, the company generated $52.1 in gross sales compared to $18.8 million for the same period last year. However, its gross margin slid to 24.2% from last year’s 35.2%. The company’s management has termed the decline as a natural consequence that comes with the kind of expansion the company undertook during the fiscal year. Management claims that measures have already been taken to stabilize and grow margins going forward.
Among the notable events that the company undertook during the year include rebranding from Kush bottles to KushCo Holdings. This is in response to the company’s changing model diversifying from its core dealings to newer sectors. The company appointed Christopher Tedford as its new CFO while promoting Jim McCormick to Chief Operating Officer.
Furthermore, KushCo Holdings expanded overseas to Canada and China. The expansions are among the items responsible for the company’s spiraling costs. The company also opened a warehouse facility in Massachusetts among several other undertakings that besides adding to the company’s expenditure contributed to its revenue growth.
Nick Kovacevich, Chairman and CEO of KushCo Holdings said that “As the industry continues to develop, we [KushCo] have transformed our business model, now operating a diverse group of business units that are transformative leaders across several categories. Our dramatic expansion of services has enabled us to enter new markets and reach a wider customer base. “
