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News Update


Cannabis Products Retailer Achieves Record Sales in Q3 FY21
News Update

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Gross sales of Stem Holdings dba Driven by Stem during the quarter were 104% higher than they were a year ago.

In a news release, Stem Holdings Inc. dba Driven by Stem (STEM:CSE; STMH:OTCQX) announced its Q3 FY21 quarter financial results, highlighting that its sales during the period were an all-time high.

"We are building our footprint with a continued strong focus on cost reduction, operational excellence, and customer acquisition and retention to drive top-of-the-line sales and improved margins as we did this quarter," CEO Adam Berk said in the release.

Stem's gross sales during Q3 FY21 totaled $12.4 million ($12.4M), up 104% percent year over year (YOY) from $6.1M. Net sales came in at $10.6M, reflecting a 103% YOY increase from $5.2M.

Total dispensary sales during the quarter also increased YOY, by 19%, the result of a push to improve customer service, the release noted. During the quarter, Stem launched its Budee delivery platform in Portland, Ore., which likely contributed to the 7% YOY increase in sales in that state.

As for Stem's gross margin for the quarter, it was 14%, down YOY from 34%.

This decline is due to a recategorization of driven deliveries expenses in that the company moved them from general and administrative expenses to cost of goods sold. Had Stem not made this accounting change, its quarterly gross margin would have been 41.8%, reflecting a YOY increase.

Looking forward, some of Stem's near-term goals are to continue rolling out Budee in Oregon to serve most of the state, starting with Eugene in October 2021. It also aims to continue gaining market share with Budee in California. Slated for next month, September, is the debut of Stem's first dispensary, with delivery by Budee, in Michigan.

Also, Stem plans to continue expanding its cannabis growing, particularly at its Mulino and Springfield, Ore. farms. At all of its five Oregon facilities, the company is developing new core and new genetics.

1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Stem Holdings Inc. dba Driven by Stem. Click here for important disclosures about sponsor fees. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship withStem Holdings Inc. dba Driven by Stem. Please click here for more information.
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5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Stem Holdings Inc. dba Driven by Stem, a company mentioned in this article.
6) This article does not constitute medical advice. Officers, employees and contributors to Streetwise Reports are not licensed medical professionals. Readers should always contact their healthcare professionals for medical advice.

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