Staff
While Planet 13 Holdings (CSE: PLTH) (OTCQX: PLNHF)reported that its January sales held strong and that January revenue was roughly 10% higher than the seasonally slow months of November and December. CLS Holdings USA, Inc. (OTCQB: CLSH)(CSE: CLSH) said it saw a drop in its January sales.
Still, the 2020 January sales were better than in 2019. Revenue increased 49% from last year’s $0.73 million to this year’s $1.5 million. The company also reported that its consolidated record gross margin was 52% compared to 39% in January 2019 for an increase of 33%. The company also reported a 136% increase in dispensary customers, from 10,908 (351 average per day) in January 2019 to a record 25,776 (831 average per day) in January 2020.
Andrew Glashow, President, and COO of CLS Holdings said, “The month of January represented the best overall month to date for our operating divisions. We continued our positive momentum from CY19 into CY20. While January of 2019 saw a drop-off in revenue after the holiday period, we saw a continued acceleration in revenue and customer growth this January.”
CLS said that the installation of a new POS system allowed for increased transactions, more hands-on interaction with our customers and a substantial decrease in customer wait times. Glashow added, “The company has made great strides supported by a team of 80 hardworking, dedicated employees in Las Vegas. We anticipate that 2020 will be CLS Nevada’s best year and are carefully managing growth while increasing margins and profitability. The month of January 2020 also marked double-digit positive gross margin expansion while running ahead of our CLS Nevada operating plan. CLS Nevada continues to be cash flow positive, which facilitates all our growth and capital improvements.”
CLS said in its statement that it had executed agreements to provide third party wholesale manufacturing at our North Las Vegas, NV facility. Glashow also said, “Moving forward in 2020, we expect to see substantial revenue and margin expansion from our newly built conversion and extraction facility in North Las Vegas, NV. We have begun to manufacture for a number of third parties and are creating an entire new line of effect-based products to be launched soon. These products will be unique and differentiated in the Nevada cannabis market”.
