California-based KushCo Holdings, known primarily as a cannabis packaging company, may become the first U.S.-based publicly-traded cannabis-related company to bring in over $50 million in annual revenue. Other high revenue U.S. cannabis companies include Charlotte’s Web Holdings and Green Thumb Industries.
KushCo Holdings (OTCQB:KSHB), the parent of Kush Bottles, Kush Energy, the Hybrid Creative, and Koleto Packaging Solutions, expects $51 million for the year ended August 31st, 2018.
Founded in 2010, KushCo has facilities in the five largest U.S. cannabis markets and a sales presence in all major U.S. cannabis markets. It has sold more than 1 billion units and serves more than 5,000 dispensaries, growers, and producers in North America, South America, and Europe.
Kush revenue grew 171% over the previous year, following efforts to expand of its product portfolio and create of a more efficient distribution platform. These efforts included:
– the launch of Kush Energy, a division supplying the cannabis industry with solvents and hydrocarbons;
– the opening of new distribution centers in Worcester, Massachusetts and Las Vegas, Nevada.
– the launch of Kush Supply Canada, in Toronto.
– the launch of Koleto Packaging Solutions, an R&D arm that develops innovative packaging and IP.
– the purchase of Zack Darling Creative Associates and its subsidiary, The Hybrid Creative, marketing companies.
Nick Kovacevich, CEO and Chairman of KushCo, noted, “…our expected fourth quarter revenues of $19 million is a testament to our team completing key acquisitions, and the effectiveness of our sales model.
…We expect the industry will continue to see rapid growth and a race to achieve scale…” added Mr. Kovacevich. “…Heading into 2019 we are… just getting started.”
Kush did take a $1.8 million inventory adjustment charge resulting from opening new distribution centers and its lack of a global warehouse management system. They plan to address this with software solutions in early 2019.
Source Kush press release