Hempacco Co., Inc. (NASDAQ: HPCO) is a manufacturer, distributor and marketer of hemp-based alternatives to traditional hemp-based cigarettes. The company also has hemp-based rolling papers and related accessories. Shares of the hemp smokables company are surging 42% through afternoon trading on Wednesday, October 12, 2022. Over the past three months, Hempacco has seen average daily volume of 2.4 million shares. However, volume of 24.7 million shares or dollar volume of around $76.57 million, has already exchanged hands through afternoon trading.
Shares of Hempacco are soaring after the company announced revenue results for the six month period ended June 30, 2022. The company reports total revenue for the first half of 2022 came in at $2.8 million, which represents year-over-year growth of 486%. Hempacco says the revenue growth has been driven by its long-term $9.2 million purchase order from HBI-Raw, one of the largest smoking paper companies in the world. The HBI-Raw deal initially launched during the fourth quarter of 2021, with continuous deliveries since the beginning of 2022.
Hempacco has also been working on building its other partnerships with Hemp Hop, Rick Ross & Rap Snacks founder James Lindsay, and a 50/50 partnership with Cheech and Chong.
Sandro Piancone, co-founder and CEO of Hempacco, says revenue growth really accelerated during the second quarter. Q2 2022 revenues surged 93% from Q1 2022 results, as gross operating margins increased from 18% to 25%. The company has continued to maintain strict cost controls and has reduced operating expenses by 45%, which helped drive a breakeven earnings-per-share result for Q2 this year.
Jorge Olson, Co-Founder and CMO of Hempacco, added, “Our growth in the first half of the year is even more impressive when you consider the capital we had available at the time. Now, with the proceeds raised in our Nasdaq IPO, we are operating from a significantly strengthened position which we believe will enable us to further accelerate sales growth moving forward.”
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