LOVE Hemp Group PLC (AQSE: LIFE) (OTCQB: WRHLF), one of the UK’s leading CBD and hemp product suppliers, is pleased to provide an unaudited post-close trading update for the year ended 30 June 2021 (“FY21” or “the Period”).
|Revenue, £m||4.31||2.69*||+ 60%|
|Number of Units Sold||188,865||54,972*||+ 244%|
|Number of Consumer Accounts||36,975||17,928*||+ 106%|
Love Hemp delivered significant sales growth during the Period as a result of increasing consumer recognition of its brand, its established online platforms, presence in major retailers and the growing interest in CBD products in the UK. FY21 revenue totalled £4.31m, a 60% increase on FY20, with the number of units sold in FY21 increasing 244% from FY20 to 188,865.
The Company saw stronger revenue in H1 2021, of £2.38m, compared to £1.93m in H2 2021, due to large orders from Boots and Holland & Barrett and in October 2020. This increase in third party retail sales significantly changed Love Hemp’s revenue streams. During the Period, the Company’s own online channels, lovehemp.com and cbdoilsuk.com, represented 59% of total revenue, with third party retail representing 41% of total revenue, a change from 80% and 20% respectively for FY20. The Company expects these revenue streams to evolve further as sales via online channel partners, such as Amazon, come online in Q1 2022.
Revenue from the Company’s own online channels, lovehemp.com and cbdoilsuk.com, grew 17% in FY21 from FY20, with the number of consumer accounts increasing 106% in FY21 to 36,975. The Company anticipates continued growth in sales from its online channels in line with its move to a subscription based model as well as significant above-the-line marketing campaigns in partnership with Anthony Joshua.
Revenue from third party retailers, including Boots and Holland & Barrett, increased 236% during the Period. Love Hemp products are now sold in 198 Boots stores and 838 Holland & Barrett stores across the UK, with distributors including Ocado, Alliance Healthcare Distribution Ltd and CLF Distribution increasing this presence to over 2,000 stores in the UK. Of Love Hemp’s 49 Stock Keeping Units (“SKUs”), across eight product ranges, 20 SKUs are now available in high street retailers.
Love Hemp’s revenue continues to be UK-centric. However, this is expected to change meaningfully as the Company pursues its large-scale international growth strategy. During the Period, the Company raised over £10 million in equity. These funds will be invested in targeting new geographies including the United States, Europe, and Japan as well as brand expansion via partnerships with Anthony Joshua and the Ultimate Fighting Championship.
Tony Calamita, Chief Executive Officer of Love Hemp Group commented: “The record revenue we have seen in the financial year 2021 is an endorsement of the growing strength and visibility of Love Hemp, which has grown in line with the burgeoning consumer interest in high-quality CBD products in the UK. This consumer demand and trust in our products is increasingly being reflected in major high-street retailers seeking to stock Love Hemp products to enrich their wellness offerings, where we have seen our shelf presence double in FY21. During the year, we saw a 236% increase in third party retail sales and a 56% increase in units sold through our high street stockists, including Boots and Holland & Barrett.
Our multi-channel approach to sales resulted in increased online sales and consumer accounts. Our online distribution network and the revenue streams emanating from it are expected to increase significantly in FY22 as we launch new online channel partners, including Amazon.
Love Hemp is well positioned to benefit from the growing consumer appetite for CBD wellness products in the UK, and we look forward to launching our first major marketing campaign ahead of Christmas in partnership with Anthony Joshua. In addition to growth in the UK market, we have spent the year preparing for our launch into new geographies, including the US. The US CBD market is considerably larger than the UK and will therefore be transformational for Love Hemp. Our growth strategy puts us on a trajectory to at least double our revenue in FY22.”
* Love Hemp Group plc, (formerly World High Life plc) acquired Love Hemp Limited (“LHL”) on 18 October 2019. As a result, the Audited Accounts of Love Hemp Group plc for its financial year ended 30 June 2020 do not include LHL’s results for the period between 1 July and 18 October 2019. In this announcement, in order to provide a meaningful comparison, the information relating to FY20 is based on LHL’s entire Financial Year ended 30 June 2020, not just for its period of ownership by the Company.