Love Hemp Group PLC Announces Strategy/Company/Ops Update

Love Hemp Group

Further to the outlook provided on 31 March 2022 for the half year, the corporate expects to report total revenues of £3.6 million for the fiscal year ending 30 June 2022, representing revenues slightly ahead of management expectations.

This result was achieved against a challenging backdrop of the pandemic, the impact on prices from the continued geopolitical situation, and extensive delays in publishing the UK Novel foods product register, which also impacted the business’s working capital.

Furthermore, the less-than-expected financing earlier this year has also resulted in significant reductions in marketing programs. However, despite this backdrop, the corporate still experienced sales growth during the year’s second half.


Revenue continued to be UK-centric with year-on-year growth delivered in major retail stores and showed revenue of £2.15 million in FY22, up 19%, compared to £1.78m in FY21.

Direct Consumer (DTC) sales still are slow via the Company’s online channels, lovehemp.com and cbdoilsuk.com but have generated 7437 new customers. DTC sales represent 26% of total revenue, down from a 59% share of total revenue compared in FY21.

A replacement Head of Digital commerce has now been appointed to help grow DTC sales.

Also read – Prospedia Capital Raises Funds To Harness Hemp For The Automotive And Housing Sector.

Love Hemp successfully had all 34 products added to the Novel Foods Register on 31 March 2022. With this barrier to entry removed, the corporate is taking aggressive steps to capitalize on the opportunity.

The administrators believe combining new DTC initiatives and including Love Hemp products on the Novel Food Register will open the door for further retail opportunities, increasing sales and building brand equity.

Operational Update

The Company announced on 31 March 2022 that it was initiating a significant operational review of its cost base and operational procedures, thanks to the H1 trading performance and the limited finance available.

The review positively impacts the business’s efficiency, with group operating costs being reduced significantly in H2 while achieving growth within the same period.

Additionally, board costs through the restructure announced on 8 July 2022 have also been significantly reduced.

Brand Update

Love Hemp is proud to possess and position itself as one of the leading CBD health and wellness brands in the UK. This has been validated by multiple independent consumer surveys and recognizable industry awards.

In November 2021, the corporate commissioned an independent survey with Market Measures Limited to understand better the impact of its national TV and media campaign featuring brand partner and former heavyweight boxing champion Anthony Joshua OBE.

A survey of 1000 adults positioned Love Hemp as an industry leader, with 19% of respondents being conscious of the brand and the words premium, quality, trustworthy, and natural being the foremost highly affiliated with the brand.

Also read – The House That Hemp Built: Fargo Developers Build Hempcrete Home To Study Energy-Saving Benefits.

In December 2021, Love Hemp was also awarded ‘Leading CBD brand 2021’ within the Commercial Cannabis awards organized by Global Health and Pharma. Love Hemp is additionally a nominated finalist for the ‘Most Loved CBD brand’ in the World CBD awards due to take place in October 2022.

Tony Calamita, the CEO, commented, “I am delighted that we’ve continued to expand our footprint with greater distribution into major retail stores and delivered record sales of product units, so more consumers than ever are benefiting from our products.

This has been achieved while undertaking a big operational review, and I am confident this growth will continue.

The Company plans to make Love Hemp more visible internationally, and sales overseas provide a significant opportunity in the future. After some challenges, we are a dynamic and passionate band that is once more on a growth curve with the most powerful and influential brand partnerships in the sector. Now it’s our time to capitalize on the opportunity.”

Outlook

The Company will continue to drive sales growth in FY23, with organic growth expected in its DTC and retail sales channels.

The successful inclusion of 34 products onto the novel foods product register should end in solid growth in the Company’s B2B channels and further increases in building brand equity.

As an immediate result, the corporate has already recently agreed on new major retail listings. Love Hemp anticipates launching a range of its products in these new stores and respective online platforms in Q4 of 2022.

The corporate is also pleased to announce its advanced discussions with several other major retailers interested in stocking Love Hemp products. It will report progress on these new retail launches in due course.

Also read – California Hemp Farm Seizes 34,000 Illegal Cannabis Plants.

This coming year Love Hemp plans to take a position further in product development and intends to release numerous new products in both ingestible and topical formats.

This is often expected to give the Company a greater presence in marketplaces such as Amazon and eBay. The products will be designed to meet the specific needs of several consumer segments, including sleep, pain, anxiety, stress, and athletic recovery. They can provide another source of potential sales growth.

About Love Hemp Group

Love Hemp Group may be a brand-led consumer goods company focused on health and wellness solutions for consumer use cases, including sleep, pain, anxiety, stress, and recovery.

The corporate is a pioneer in the UK-based premium high-quality CBD market, with over 40 products, including oils, edibles, sprays, cosmetics, and topicals.

The Company’s range of products is sold online across 70 websites and in over 2,000 stores, including some of the biggest retailers in the UK, like Holland & Barrett, Boots, and Ocado.

Listed on the Aquis stock market (AQSE: LIFE), the Company recently changed its name to Love Hemp Group plc, from World High Life to raised reflect its focus on supporting the “best in class” CBD brand as it embarks on a wider expansion of its core business and offers.

Market Abuse Regulation (MAR) Disclosure

This announcement contains details for Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by the European Union (Withdrawal) Act 2018 (“MAR”) and is disclosed by the Company’s obligations under Article 17 of MAR.

Certain statements made during this announcement are forward-looking statements. These forward-looking statements aren’t historical facts but are based on the Company’s current expectations, estimates, and projections about its industry, beliefs, and assumptions.

Words like ‘anticipates,’ ‘expects,’ ‘intends,’ ‘plans,’ ‘believes,’ ‘seeks,’ ‘estimates,’ and similar expressions are intended to spot forward-looking statements.

These statements aren’t a guarantee of future performance and are subject to known and unknown risks, uncertainties, and other factors, several of which are beyond the Company’s control, are difficult to predict, and will cause actual results to differ materially from those expressed or forecasted in the forward-looking statements.

Also read – UK Parliamentary Group’s Curious Fantasy: 220,000 Hectares Of Hemp By 2027

The corporate cautions security holders and prospective security holders not to place undue reliance on these forward-looking statements, which reflect the view of the corporate only as of the date of this announcement.

The forward-looking statements made during this announcement relate only to events as of the date on which the statements are made.

The corporate will not undertake any obligation to publicly release any revisions or updates to these forward-looking statements to reflect events, circumstances, or unanticipated events occurring after this announcement except as needed by law or by any appropriate regulatory authority.

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