Vancouver, B.C. – TheNewswire – July 21, 2021 – Luff Enterprises Ltd, (CSE:LUFF) (CNSX:LUFF.CN) (“LUFF” or the “Company”) is pleased to provide a corporate and operational update, and preview of headline financial results for the second quarter ended June 30, 2021.
The Company continues to focus its efforts on growing sales of its core suite of hemp derived CBD wellness products primarily through online channels.
These efforts are showing signs of success, and our heavy investment in inventory, new team members, and focused marketing spend is driving good sales velocity.
While the US market remains competitive, our early success in growing sales is highly encouraging. We are seeing repeat buyers and are exploring a subscription model for select products.
Second Quarter Preliminary Unaudited Financial Highlights (All amounts stated in CAD unless otherwise noted)
– Achieved unaudited net revenue of $245,640, an increase of 248% over Q1 2021 sales of $70,598
– Estimated gross profit margin of 37% in Q2, versus 32% in Q1 2021
– “Sale ready” inventory at retail sales value of over $3m
We are committed to establishing multiple distribution channels, attaining consistent and recurring revenue streams, and scaling manufacturing capabilities in Portland.
Concurrent to developing the US market, we continue discussions with partners for expansion into new and promising international markets, like Mexico and Europe, with the aim of replicating the D-to-C model in these markets.
Update on Sale of Nevada licenses and Facility
As outlined in our recent filings, we made the decision to divest our Nevada licenses and building for approximately $6m, and concentrate our resources on