Kush Bottles Inc (OTCMKTS:KSHB) posted financial report for its fiscal ended August 31, 2016. The company posted record revenue of over $8.215 million in FY2016, representing YoY growth of 105%. Record operating income came at $84,455, registering year-over-year jump of 124%. Also, working capital surplus increased to over $2.026 million, showing a YoY growth of 877%.
Operating expenses as a fraction of revenue came at 32%, representing a YoY drop of 12%. Revenues in core markets of Oregon, Washington, California and Colorado were over $7.678 million in fiscal year 2016, registering YoY growth of 99%. Revenues in company’s non-core markets came at $536,616 in FY2016, showing YoY growth of 228%.
The management speaks
Nick Kovacevich, the CEO of Kush Bottles, said that they are extremely delighted with the revenue advancement they witnessed in all markets in FY2016. They are thrilled to continue to push hard in growing markets in 2017, and to capitalize on the numerous new emerging markets as a result of increased marijuana legalization.
The CEO added that they are excited with their performance in FY2016, and they are already implementing on plans to establish and invest for the coming period. Oregon, Alaska, Colorado and Washington are only the tip of the iceberg. Kush Bottles are committed to continuous advancement of infrastructure and organization to accommodate imminent market growth.
Chris Martin, the CFO of Kush Bottles, said that they have focused in last year on enhancing the scalability and efficiency of the operations and the decline in operating costs as a percentage of sales reflects the company is growing. The company intends to continue to develop new efficiencies where possible so they can benefit more out of the owned resources.
Ryan Selewicz, the Director of Marketing and Technology, said that technology has been of significant importance in making operations more scalable and it will remain to be a vital part of company’s strategy going forward. The online store is turning ordering process more convenient for clients and it is also turning order processing more resourceful for team. Clients are welcoming this advancement as they increased online transactions by over 290% YoY. Average online order value has surged by over 65% year-over-year.