Hill’s Turnaround Picks Up Steam in Q3
Ryan Allway
June 6th, 2023
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Hill Incorporated (TSX-V: HILL / OTCQB: HSEED) has undergone nothing short of a complete transformation over the past couple of years. Driven by a nearly 5x increase in DehydraTECH licensing revenue, gross profits soared 44% year-to-date, helping cut net losses by 35%. Meanwhile, the company’s reformed balance sheet puts it on firm financial footing.
In this article, we’ll take a closer look at the company’s strong third-quarter results, what’s driving them, and what to look for in the future.
DehydraTECH Sets Quarterly Record (Again…)
Hill’s DehydraTECH business continues to see robust growth, with a 442% year-over-year increase in licensing revenue. Since 2021, the company has grown from a single licensee in four states to eight active licensees across thirteen states. These include names like Lume Cannabis Co. in Michigan and Neo Alternatives in Massachusetts.
While geographic expansion has helped drive growth, new product formats add significant leverage. The number of unique product lines incorporating DehydraTECH technology has risen from three to ten over the past few years. As a result, the company is generating more revenue from its existing licensees independent of new licensees.
DehydraTECH increases the bioavailability of active ingredients by 5x to 10x by avoiding first-pass liver metabolism. As a result, consumers can feel the effects within 15 to 20 minutes rather than waiting an hour or two. Meanwhile, the technology also helps mask unwanted tastes, limiting the need for sugar and other additives in edible products.
Streamlining the Vin(Zero) Business
Hill’s Vin(Zero) business has also seen dramatic improvements, with a shorter order-to-cash cycle, reduced inventory costs, and less need for costly temperature-controlled transportation. While these changes could introduce more dramatic quarter-to-quarter variability, the net result is more profitable and streamlined operations.
Vin(Zero) is an alcohol-free wine that doesn’t compromise on taste. Unlike many alcohol-free wines, the company’s proprietary process removes alcohol from fine wines without impacting flavor. While the product is primarily sold in Canada, there is also distribution in the United States, and consumers can purchase online at www.hillstreetbeverages.com.
What’s Next?
Hill Incorporated’s (TSX-V: HILL / OTCQB: HSEED) management team is laser-focused on growing DehydraTECH licensing revenue by expanding into new states, launching new SKUs, and signing new licensees. With a clean balance sheet and momentum on its side, investors may want to take a closer look at the stock as it continues towards its path to profitability.
“We are well capitalized and in a strong position to work towards achieving our growth potential,” said CFO Matthew Jewell in a recent press release. “I look forward to seeing where we can take it from here now that legacy items have been resolved and the team is fully onboarded and well positioned for continued success.”
For more information, sign up for the company’s mailing list HERE.
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This communication contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice. Read our full disclosure at: https://cannabisfn.com/legal-disclaimer/.
Hill Street Beverage Co. Inc. is a client of CFN Enterprises Inc. Hill Street Beverage Co. Inc. agreed to pay CFN Enterprises Inc. $27,000 beginning on April 4, 2023 for a three month investor awareness campaign.
This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.
About Ryan Allway
Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.
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