Voice Holdings, Inc. d/b/a Driven By Stem announces record sales for the third quarter
Gross sales increase of 104% to US$12.4 million year-over-year
Net sales increase of 103% to US$10.6 million year-over-year
BOCA RATON, Florida, Aug. 16, 2021 (GLOBE NEWSWIRE) — Due to a gross margin error identified in the release released today at 4:30 p.m. ET, the next corrective release will be released. This updated version has correct, updated GM numbers.
Voice Holdings, Inc. d/b/a Driven by Voice(OTCQX: STMH) (CSE: VOICE) (the “Company” or “Rod“), the first multi-state, vertically integrated Farm-to-Home™ (F2H) cultivation and technology omnichannel cannabis company with its own Delivery-as-a-Service (DaaS) marketplace platform, today reported results for its third fiscal quarter ended June 30, 2021. Voice reported record third-quarter gross sales of $12.4 million and net sales of $10.6 million, up 104% and 103%, respectively, from gross revenue of $6.1 million and last year’s 5.2 million net sales. Gross margin was 14%, compared to 34% in the same period last year, as a result of a reclassification of costs related to the Driven Delivery business from Sales General & Administrative (“SG&A”) to Cost of Goods Sold (“COGS” ), without which the company’s gross margin would have increased by 7.6% to 41.8%.
“I am proud of our results and of our team executing our robust four-point plan for growth,” said Adam Berk, Chief Executive Officer. “We are building our footprint with a strong continued focus on cost savings, operational excellence and customer acquisition and retention to drive revenue and margin improvement, as we have done this quarter,” he continued. “Most importantly, we are uniquely connecting our brands, products and delivery services to the Farm to Home™ cannabis community for long-term stability. We expect to achieve long-term benefits that will create value for our shareholders as we invest in organic and acquisitive growth,” Berk concluded.
Stem also reports a 19% increase in total pharmacy sales, significantly outperforming the market, particularly in Oregon, which grew 7% over the same period. This reflects continuous improvement initiatives and emphasis on customer service. This effort tied in seamlessly with the launch of the company’s Budee™ delivery platform in Oregon on August 9, 2021. A custom app was built front-to-back for this official launch and Budee™ is now anchored by Stem’s TJs on Powell pharmacy serving the Greater Metro Portland area. The company expects Budee™ to expand to cover most of Oregon, starting with the Eugene subway in October 2021. In addition, Budee™ continues to increase its penetration of the California delivery market from which it originates. It now covers 92% of that state’s population, especially in areas of high demand and low density of pharmacies.
Stem also expects to launch its first pharmacy in Michigan in September 2021, which will be coupled with the delivery of Budee™, as the next step in the company’s “Get Ready” retail expansion strategy.
As Stem builds its Farm-to-Home™ infrastructure with vertical integration from grow to delivery, the company has also invested in expanding its canopy for high-quality cannabis growth, most notably at its Mulino, Oregon ranch and its newest facility in Springfield , Oregon . All five Stem breeding facilities in Oregon grow core and new genetics to delight customers and build loyalty. Stem’s extraction lab, which now includes solventless extraction, supports both Stem’s edibles and concentrates, two sectors that are both growing and increasing margins. Stem products are now sold in more than 240 pharmacies outside the Stem brand stores.
As previously announced, Stem will hold a conference call on Tuesday, August 17, 2021 at 8:00 am to discuss the financial results.
Management plans to hold a conference call on Tuesday, August 17, 2021 at 8:00 a.m. EDT to discuss financial results.
|Tuesday 17 August 2021|
|8:00 a.m. EDT|
|1-877-425-9470 (US Toll Free) or 1201-389-0878 (International)|
|A live webcast can be accessed at the following link: http://public.viavid.com/index.php?id=146252
A replay of the webcast will be archived on the Company’s website for one year.
About Stem Holdings
Stem Holdings is a leading omnichannel, vertically integrated cannabis products and technology company with state-of-the-art cultivation, processing, extraction, retail, distribution and delivery-as-a-service (DaaS) operations in the United States. Stem’s family of award-winning brands includes TJ’s Gardens™, TravisxJames™ and Yerba Buena™ flowers and extracts; Cannavore™ edible treats; Doseology™, a mass-market CBD brand to be launched in late 2021; as well as the DaaS brands Budee™ and Ganjarunner™ through the acquisition of Driven Deliveries. Budee™ and Ganjarunner™ e-commerce platforms provide proprietary logistics to consumers and an omnichannel UX (user experience)/CX (customer experience).
This press release contains forward-looking statements and information that are based on management’s beliefs and reflect the company’s current expectations. When used in this press release, the words “estimate,” “project,” “believe,” “anticipate,” “plan,” “expect,” “plan,” “forecast,” “may,” or ” would” and the negative of these words or such variations thereon or similar terminology are intended to identify forward-looking statements and information. The forward-looking statements and information in this press release contain information related to: (i) the implementation of the company’s business plan; (ii) expanding Stem’s brands, retail footprint, delivery services and products into other markets, including Michigan; (iii) expected impact of the Company’s extraction laboratory; (iv) the expected launch of new brands and products by Stem; and (v) expected organic and acquisitive growth.
By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause our actual results, performance or performance, or other future events, to differ materially from any future results, performance or performance expressed or implied by such forward-looking statements . Such factors include the following risks, among others: risks associated with the execution of the company’s business plan and related matters, risks associated with the cannabis industry, competition, regulatory change, the need for additional funding, dependence on key personnel , the potential for conflicts of interest between certain officers or directors, insurance, intellectual property and trusted supply chains; and risks associated with the company and its activities in general. Forward-looking statements are made based on management’s beliefs, estimates, and opinions as of the date on which the statements are made, and the company assumes no obligation to update any forward-looking statements if those beliefs, estimates, and opinions or otherwise change. Investors are cautioned not to place undue assurance on forward-looking statements.
Director of Branding and Public Relations