Hemp Black, a subsidiary of Australia’s Ecofibre (ASX:EOF), sold tens of thousands of its new face masks during May according to Ecofibre.
As we reported in early May, the new face mask uses anti-microbial copper technology yarns for the exterior layers and an inner layer of Hemp Black material consisting of a blend of recycled PET and hemp flower extract (CBD) – there doesn’t appear to be any hemp fibre in the masks, which was a little surprising.
Regardless, it looks like the masks have been pretty popular, with 67,000 sold in May, generating revenue of AUD $1.2 million with a 50% gross margin.
Ecofibre says manufacturing capacity will remain the same in June and boosted in July. Additionally, another Personal Protective Equipment (PPE) item is to be added to Hemp Black’s range this month – the Fusion/Flex Gaiter (neck gaiter); which will also use Hemp Black Element and copper yarn technology. A neck gaiter is a neck warmer that can also be pulled up over the mouth and nose.
“This product is focused on providing customers with another more flexible option for personal protection,” says Ecofibre.
The idea of face masks, neck gaiters and other cloth mouth coverings isn’t so much to prevent getting an infection, but to help prevent those who might have COVID-19 with mild or no symptoms from spreading it to others.
In other news from Ecofibre, the pandemic followed by protests in the USA has caused some challenges for another subsidiary, Ananda Health; which manufactures nutraceutical products for human and pet consumption, topical creams and salves.
Ecofibre says the situation in the US will impact Ananda Health’s near-term sales and the company has withdrawn its 2nd half guidance.
“The Company has strong confidence in the US hemp-derived CBD market, and we look forward to a return to a level of normality in due course,” states EOF.
In related news, Ecofibre CEO Eric Wang, who has been based in Australia, says he will remain in the US for the duration of this year and permanently relocate his family to the United States in December.
“Over the past several years, business requirements have kept me in the US for about eight months each year, however, Australia’s onerous travel restrictions and quarantine requirements have meant commuting to the US is no longer a viable option,” stated Mr. Wang.