Bloomios Reports Q1 2023 Revenue up 30% Sequentially and 84% Y/Y to $2.75 Million

Annualized Run Rate Hits $11.0 Million vs. $6.1 million in 2022, Driven by Increased Order Flow and Production Capacity

Q2 2023 Outlook of Revenues to Exceed $3 million, up more than 137%

SANTA BARBARA, Calif., June 1, 2023 /PRNewswire/ -- Bloomios, Inc. (OTCQB: BLMS), a leading white-label and private-label manufacturer and wholesaler of hemp-derived nutraceutical, cosmetics and pet products, reported results for the first quarter ended March 31, 2023. All comparisons are to the same year-ago period unless otherwise noted.

Q1 Highlights

• Revenue totaled $2.75 million, up 30% sequentially and up 84% compared to the year-ago quarter, reflecting a return to revenue growth post-transformative acquisition.
• Ended quarter with substantial order backlog as operations continue to scale to meet growing demand.
• Significantly expanded production capacity at Daytona cGMP manufacturing facility with the addition of equipment, systems and operations.
• Appointed Joe Reid as chief manufacturing officer of Bloomios Private Label to lead plant expansion and efficiencies.
• Customer and product sales continue to diversify following the introduction of a new range of nootropic and nutraceutical products.

Management Commentary

"Our strong sequential and year-over-year revenue growth for now two quarters in a row demonstrate we're now back on a growth trajectory," stated Bloomios CEO, Michael Hill. "We also continued to achieve incremental improvements in operational costs and efficiencies, with this helping to shore up our bottom line from the previous quarter while delivering products faster to the customer.

"During the quarter we continued the relocation of the portfolio of equipment, systems and operations that we acquired last fall to our cGMP facility in Daytona, Florida. The transition has taken longer than anticipated, with this resulting in delayed revenues and lower than anticipated production. In spite of these challenges, the progress we've been making with the new equipment coming online is helping us address a substantial backlog, with this reflected in the revenue growth over the past two quarters.

"Looking ahead, we expect another quarter of sequential and year over year growth, with second quarter sales on track to exceed $3 million compared to $1.3 million in the same year-ago period. We believe this will be driven by our broadened customer base, as well as expanding sales team and product portfolio.

We will remain focused on expense reductions through consolidation and increasing efficiencies with our expanded manufacturing operations. While many companies have been impacted by supply chain constraints, we are not experiencing or expect to have any significant supply constraints. 

"To further accelerate growth and capture market share, we are also evaluating certain strategic acquisitions in what we see as a target-rich M&A environment. In all, our ramping production, order flow and record backlog all support 2023 becoming the best year yet for Bloomios."

Outlook
Company expects second quarter of 2023 revenues to exceed $3 million, up more than 137% from $1.3 million in the same year-ago period.

Q1 Financial Summary

Revenue in the first quarter of 2023 totaled $2.75 million, up 84% from $1.5 million in the same year-ago quarter.

Gross profit totaled $675,000 or 25% of revenue as compared to $640,000 or 43% of revenue in the same year-ago quarter. The decrease in gross margin percentage was primarily due to the increase in the cost of goods sold which was associated with factors related to the integration of the acquisition. Gross margin is anticipated to improve in future quarters.

Operating expenses totaled $2.3 million compared to $1.6 million in the same year-ago quarter, with the increase primarily due to costs associated with the integration of equipment, systems and operations from the acquisition.

Net loss totaled $2.7 million compared to a net loss of $1.3 million in the same year-ago period. Net loss included interest expense of $1.1 million as compared to $186,000 in the same year-ago period.

Current assets totaled $2.4 million as of March 31, 2023, as compared to $2.4 million on December 31, 2022.

About Bloomios

Bloomios, Inc. manufactures, markets and distributes U.S. hemp-derived supplements and nutraceutical products through wholesale distribution channels and its wholly owned subsidiary, Bloomios Private Label. The company provides custom formulation, brand development, manufacturing and order fulfillment to a wide variety of customers, including small and major brands, chain stores, vape shops and distributors. It offers private-label and white-label customers a wide selection of more than 80 customizable hemp products across 10 categories. Bloomios is headquartered in Santa Barbara, California, with manufacturing and distribution in Daytona Beach, Florida, and regional sales offices in Nevada, Colorado and Florida. To learn more, visit bloomios.com. 

Safe Harbor Statement

This news release contains "forward-looking statements" as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with business strategy, potential acquisitions, revenue guidance, product development, integration and synergies of acquiring companies and personnel. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-K and other periodic reports filed from time-to-time with the Securities and Exchange Commission.

Company Contact:
Doug Rohrer
Chief Business Officer
Bloomios, Inc.
Tel (805) 222-6467
Email contact

Investor Relations Contact:
Ronald Both
CMA Investor Relations
Tel (949) 432-7566
Email contact

Media Contact:
Tim Randall
CMA Media Relations
Tel (949) 432-7572
Email Contact

SOURCE Bloomios, Inc.