cbdMD Inc (YCBD)

cbdMD Inc. (NYSE: CBD.TO): A Detailed Overview

Company Profile:

Detailed history and background of cbdMD Inc.

Founded in 2015, cbdMD Inc. is a publicly-traded company based in North Carolina, specializing in hemp-derived CBD products. The company started as a subsidiary of Colorado-based Level Brands, and later rebranded as cbdMD, Inc. in 2021. They operate across the US with subsidiaries in the UK and Germany.

Description of the company’s core business areas.

cbdMD focuses on developing, manufacturing, and distributing a range of CBD products, including tinctures, capsules, gummies, topicals, and pet products. They primarily source their hemp from American farms and utilize third-party labs for product quality testing. The company primarily uses an e-commerce model, selling directly through their website and partnering with other online retailers.

Overview of the company’s leadership team and corporate structure.

Leadership Team:

• George Mazza: Chairman and CEO
• Michael Neaman: Chief Financial Officer
• Kenneth K. Cohn: General Counsel
• Gary Vaynerchuk: Partner & Head of Content

Corporate Structure:

cbdMD operates a centralized management structure with the Board of Directors overseeing the executive team comprising senior leaders responsible for various key functions like operations, finance, legal, and marketing.

Top Products and Market Share:

Identification and description of cbdMD Inc's top products and offerings.

• Broad Spectrum CBD Oil/Tinctures: These come in various strengths and offer diverse CBD experiences.
• CBD Gummies: Diverse flavours and potencies cater to a wide range of needs.
• CBD Capsules: Easy-to-use format for individuals preferring capsules over other forms.
• CBD Topicals: Lotions, creams, balms, and roll-on for targeted application.
• CBD Pet Products: CBD tinctures, oils, and treats formulated for pets.

Analysis of the market share of these products in the global and US markets.

The global CBD market is estimated to be worth $7.92 billion in 2023, with a projected reach of $27.33 billion by 2030. The US market alone is estimated to be worth $5.15 billion in 2023 with a projected reach of $16.5 billion by 2030. cbdMD's market share is estimated to be around 2.0% in the US market.

Comparison of product performance and market reception against competitors.

cbdMD is a recognized name in the CBD industry and has received generally positive customer reviews across its product range. However, competition is fierce, with major players like Charlotte's Web, Diamond CBD, and Medterra holding significant market shares. cbdMD differentiates itself through its focus on quality, product efficacy, and competitive pricing.

Total Addressable Market:

The market for hemp-derived CBD products is vast and growing rapidly, driven by increasing consumer demand for natural alternatives for wellness and therapeutic purposes. Estimates suggest the global CBD market will reach $27.33 billion by 2030, highlighting the immense potential for growth in this space.

Financial Performance:

Detailed analysis of recent financial statements, including revenue, net income, profit margins, and earnings per share (EPS).

cbdMD's financial performance has been fluctuating in recent years. In 2022, the company reported revenue of $149.7 million, with a net loss of $1.7 million. Gross profit margin stood at 44.6%, and EPS was -$0.02. The company has experienced challenges with profitability due to intense competition and high marketing costs.

Year-over-year financial performance comparison.

While revenue has remained relatively consistent in recent years, cbdMD has struggled with profitability. They have narrowed their net loss and improved gross profit margin, indicating efforts to improve financial efficiency.

Examination of cash flow statements and balance sheet health.

cbdMD holds $7.1 million in cash and equivalents but carries significant long-term debt of $42.4 million. Their cash flow from operations is negative, highlighting the need for improved financial management.

Dividends and Shareholder Returns:

Dividend History:

cbdMD has not declared or paid any dividends to date, prioritizing reinvesting profits into the business for growth and development.

Shareholder Returns:

cbdMD's stock price has experienced significant volatility, reflecting challenges the company faces. Over the past year, the stock has lost roughly 78% of its value.

Growth Trajectory:

Historical growth analysis over the past 5 to 10 years.

cbdMD experienced considerable growth in its early years, fueled by increasing consumer awareness and growing demand for CBD products. However, growth has slowed down recently due to market saturation and intense competition.

**Future growth projections based on industry trends