As the legal marijuana industry explodes in North America, there is plenty of money to be made by selling the supplies that producers and vendors of cannabis products need to operate. KushCo Holdings (NASDAQOTH:KSHB) gives investors a pure-play opportunity to invest in the marijuana industry supply chain, and the company can barely keep up with the growth of demand for its products.
KushCo, formerly known as Kush Bottles, got its start in 2010 supplying specialized, regulation-compliant packaging to the marijuana industry, but has diversified into other product areas…
so that packaging is now only contributing 25% of sales. Vaporizer products are the company’s biggest segment, and comprising the rest of its business is papers, supplies, labels, seals, and a new product line of gases and solvents for oil extraction. This wide range of products makes KushCo a critical supply chain partner for the cannabis industry.
Accelerating revenue growth
KushCo’s results from its fiscal fourth quarter, ending August 31, illustrate the effects of taking a lead position in a market that is growing explosively. The announcement of results was delayed until November 26 while the company sorted through some accounting issues and added a new CFO to relieve the Chief Operating Officer who had been shouldering the accounting duties. When the results belatedly came out, the numbers revealed stunning growth.
Revenue for the full year grew 117% to $52.1 million, marking the fourth straight year of triple-digit top-line growth. Revenue in the fourth quarter was…
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