Hemply Balance Holding AB (publ) ("Hemply Balance" or "The Company") publishes The Company's Interim Report for the period January – March 2022. The quarter was very strong with a y-o-y sales increase of 850% compared to the same period last year. Sales growth was 38% compared to the previous quarter.
First-quarter 2022 (same period last year) in SEK:
- Gross sales for the period amounted to SEK 2,583 (272) thousand.
- Net sales for the period amounted to SEK 1,295 (234) thousand.
- Gross profit amounted to SEK 979 (140) thousand.
- The gross margin was 75.6 (60) %.
Significant events during the quarter
January – March 2022
- The Company acquired 100% of the Polish CBD Company Hemp Juice Sp. z o.o.
- The Company signed an agreement and began the cooperation with the Japanese distributor Life Activation Co. Ltd. regarding sales distribution of all Hemply Balance’s products on the Japanese market.
- The Company launched two new products: CBD capsules and the cosmetic product Lip Balm.
- In February, a set-off issue of 120,000 shares was carried out to the sellers of Hemp Juice and 4,000 shares to Coach as a set-off for business support in connection with the acquisition.
- The Company signed an agreement and began cooperation with Bangerhead AB regarding sales of Hemply Balance’s intimate care products.
Comments from the CEO
Starting this fiscal year, we set two internal goals. The objectives were to create substantial growth compared to the first quarter year over year, and to demonstrate continued growth compared to our strongest quarter, the fourth quarter. With the results in hand, it is very satisfying to present the outcome where we report an increase of as much as 38% compared to the previous quarter and an 850% increase when compared y-o-y.
Most of the reasons for the quarter's positive outcome
The Hemply Balance team has worked hard and strategically. As a result, our own e-commerce has shown continued growth, as well as sales to our retailers. We have also developed and refined the collaboration with our Swiss distributor Götz & Brands, which in turn has established our Hemply Balance brand with most retailers in Switzerland.
We also completed the acquisition of the Polish CBD company Hemp Juice, which since February 8, 2022, is a wholly owned subsidiary of Hemply Balance Holding AB.
During the quarter, we signed an agreement with the Japanese distributor Life Activation, which placed its first, and for the Company a significant order containing Hemply Balance’s all dietary supplements and intimate care products.
The Japanese market
Demand and interest in CBD products in Japan have increased significantly. According to a report from Switzerland Global Enterprise, the CBD market in Japan has had a growth of about 100% annually, forecasting a total market value of SEK 19 billion in 2024.
The Japanese authorities have rigorous quality standards on the manufacturer and its manufacturing procedures, making it difficult for many companies to start distribution in Japan. We view the requirements positively as we manage both the manufacturing process and the standards required by the authorities.
The coming quarters will include more product launches for both the Hemply Balance and Hemp Juice brands to meet the demand for innovative health products. We are still working on the consolidation with Hemp Juice to secure the economies of scale such as joint purchasing, production, warehousing, and logistics for the use of distribution channels, market investments, and more.
Hemp Juice is an important cog in the European expansion and vision "to become a significant player in the European market through acquisitions." In parallel, we, therefore, continue to work according to our acquisition model, which we have strong faith in, to continue to expand and gain market share in the European market.
CEO Hemply Balance Holding AB
For further information, please contact:
Chairman of the board
About Hemply Balance Holding
Hemply Balance Holding AB (publ) is an e-commerce-focused health supplement company that sells safe and high-quality products in three categories: cosmetics, dietary supplements, and supplements for pets. The focus is mainly on CBD supplements and adaptogens. We add what we call "The missing ingredient" to our customers. The business model is focused on the companies’ e-commerce with elements of strategic retailers for brand building. The company owns two brands, Hemp Juice and Hemply Balance. The former was acquired in the first quarter of 2022 and the Group's goal is to continue with further acquisitions.
Augment Partners AB, tel. +46 8 604 22 55, e-mail: email@example.com is the Company's Mentor.