Cannabis companies have been growing their business operations and production activities at a robust pace over the last couple of quarters. These companies have also been investing sharply in acquisitions and strategic partnerships in a bid to capitalize on escalating demand from medical and recreational markets.
Business growth activities started translating into big revenue and earnings growth for cannabis companies. Golden Leaf Holding (OTCQB:GLDFF), for instance, reported 42% year over year revenue growth in the first quarter. The company’s strategy of expanding its penetration in retail operations adds to the sales growth.
The CEO says, “Our retail operations are a key component of our growth strategy, and we are pleased to see our increased brand recognition among customers further entrench our position as a leading retailer in Oregon. We will continue to strategically invest in our retail strategy, adding stores in optimal locations.”
Emblem Corp (OTCPK:EMMBF) recently reported year over year revenue growth of 41% in the first quarter.
Its total sale of dried-flower to medical patients stood around 52.8 kilograms in Q1, while dried flower sales to incensed producers were at 71.1 kilograms. The company plans to expand its annual production capacity to 17,000 kg by the end of this year.
Emblem management also plans to move their focus towards cannabis oil products to diversify their product portfolio. Nick Dean, President & CEO of Emblem Corp said, “Our oils now represent close to one-third of our total patient sales. As we continue to introduce new dose-controlled formats and sizes to the market, we expect this trend will continue upward.”
CannaRoyalty (OTCQX:CNNRF), on the other hand, expects to generate substantial revenue growth in following quarters, thanks to a series of acquisitions it had completed in the past few quarters. These acquisitions include Alta and River distributors. The company is planning to become the largest distributor in Canada and the United States through acquisitions and investments in growth opportunities.
Featured Image: Depositphotos/© vitormarigo
