VANCOUVER, British Columbia — Hemptown Clothing Inc. (OTCBB:HPTWF), a leading provider of environmentally responsible clothing, is pleased to announce its financial results for the fourth quarter and year ended December 31, 2003. Record revenue and concrete growth in 2003 underscore the increasing strength and drive of the company’s position in the natural fiber and clothing market.
Year-end results reflected the increased orders from new clients, increasing contribution from existing customers, and new product launches. Through aggressive sales tactics and successful marketing initiatives, the company expects to continue its expansion and financial growth.
Sales revenues for 2003 were $661,000, which represents an increase of 33% over 2002 revenues of $497,000 with the fourth quarter of 2003 resulting in record quarterly revenues of $273,000.
Gross profits in 2003 were $174,000 (26% of sales), up from $107,000 (22% of sales) for the same period in 2002. This 18% increase in gross margin as a percentage of sales reflects our ongoing efforts to reduce our production costs.
Jason Finnis, COO of Hemptown, commented, “We are excited to have turned the corner and go from the building stage of the company to that of sales and marketing. On December 22 2003, Hemptown Clothing Inc. was issued its trading symbol “HPTWF,” and was accepted for trading on the NASD OTC Bulletin Board. This was a major milestone for us in our capacity to promote ourselves and garner interest in our ever-growing product line.”
Jason also remarked that, “Our continued investment in building brand awareness and general market awareness of the benefits of hemp clothing is imperative for the growth of the company with the first quarter of 2004 already seeing an increase in sales and orders over Q1 of last year. The fourth quarter of 2003 was especially fruitful with the addition of two large distributors giving Hemptown North American-wide coast-to-coast sales representation and distribution. Our sales efforts in the fourth quarter also resulted in the signing of agreements with two large sporting goods companies to produce private label hemp apparel for delivery in 2004. In addition, $166,000 of inventory was shipped to our new distributors in late 2003, which, due to the standard terms of our distributor agreements, did not qualify as sales in the fourth quarter under U.S. GAAP. However, we expect to realize these revenues in early 2004. In summary, the team is focused on increasing sales to new markets and augmenting our product lines to enhance Hemptown’s market leadership position, and to build on the results of 2003.”
Hemptown was founded in 1995 in response to growing demand for environmentally friendly, socially responsible clothing. The company supplies wholesale imprinted promotion-wear distributors and private label customers throughout North America and the world from its head offices in Vancouver, British Columbia. Hemptown is also involved in ongoing research and development of quality and conservation-based textile technology, working vertically to enhance its products and the benefits they provide to crop farmers, consumers and the environment.
Source: Hemptown Clothing Press-Release vom 2004-03-29.