Sugarmade Inc. (OTCMKTS:SGMD) and its BudCars Cannabis Delivery Service have announced record growth of 58% for BudCars sales for April. The company indicated that there was record sales growth from the month of March in terms of daily average volume.
Surgamade expects BudCars sales in May to hit $11,000
The company has also indicated that sales in May are already showing strong, and they are on track to post a 16% growth month over month growth. Sugarmade CEO Jimmy Chan stated that, on average, in March, they reported $6,000 in sales per day while in April, it was more than $9,500 per day. Chan said that this represented tremendous growth at the company’s Sacramento hub.
The CEO added that May is already turning out well, and they expect the average sales per day to be around $11,000, which is a sign of massive growth. He further indicated that the figure of $11,000 per day only represents activity in one area. The company’s LA hub is expected to go online from summer, and following the unprecedented lockdowns in the region, Sugarmade is expecting daily sales in Los Angeles to almost triple.
Demand in California surging but the market is experiencing shortages
Management indicated that in recent weeks there has been a surge in demand in California, and the cannabis market is starting to run into shortages. However, Sugarmade is insisting that it has robust supplier relationships, and there is less risk of any challenges in agreeing forward cannabis product inventories. With other operators running into challenges in securing inventory, the company is betting on BuCars to enhance its market share, which will offer a possible driver for sales growth in the near term.
Chan indicated that they are beginning to witness a context in the market where supplier relationships are becoming more important than anything else playing to Sugarmade’s strength. He added that demand in the cannabis market in California is currently playing off the charts, with producers struggling to catch up. As a result, the trends are combining with situational and structural forces to boost BudCars.