Humble Fume Inc. HMBL OTCQX: HUMBF, a leading North American distributor of cannabis and cannabis accessories, reported its first quarter fiscal 2023 financial and operating results late Monday for the three months ended September 30, 2022.
Our focus continues to be on growth opportunities while right-sizing the business. Joel Toguri, CEO of Humble, said that we are very pleased with our efforts to expand our portfolio of cannabis brands and broaden the scope and scale of our retail relationships.
Old slow moving items are selling off old inventory levels with the North American accessories business. The previous year's inventory decreased by $6.5 m, with a balance of $17.8 m vs. the current balance of $11.2 m. Quarter-over-quarter inventory decreased by 10% or $1.3 m.
California continues to be a dynamic market, providing growth opportunities for great brands, like Cookies, to scale throughout the state, Toguri said.
The leading California-based lifestyle and cannabis brand, Cookies, was successful onboard with revenue in October. In Q 1 operational costs were incurred ahead of revenue, with additional headcount, vehicles, and other one-time costs added to ensure successful onboarding to have the infrastructure in place to sell on October 1, 2022.
Revenue has increased quarter-over-quarter with the growth of the California cannabis distribution business.
In the previous quarter, the number of deliveries increased from 128 to 602, an increase of 370%.
According to Toguri, our ongoing focus on profitable growth includes right-sizing our organization to ensure we have the most effective and efficient team in place to serve the needs of our brand and retail partners.
The restructuring cost-saving initiatives that were taken last year are starting to show up in the P&L, with overall operational expenses down by $1.5 m in the quarter over the last year relating to the North American accessories business, according to the press release.
The biggest reduction in salary and wages was seen in YoY savings of 20.7% and a QoQ reduction of 14.6%.
Get your daily dose of cannabis news on Benzinga Cannabis.