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Why the Bod (ASX:BDA) share price is tracking 5% higher today

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The Bod Australia Ltd (ASX: BDA) share price is up more than 5% today following the release of a positive trading update.

At the time of writing, shares in the cannabis healthcare company are trading 5.3% higher at 49.5 cents.

What’s driving the Bod share price higher?

The company has delivered record sales for the second-quarter of the 2021 financial year.

For the period ending December 31, total attributable sales came in at $3.3 million. This represents a 52% lift on the previous quarter, and 144% increase over the same time last year.

The strong performance was underpinned by a number of purchase orders from Bod’s exclusive global partner, Health & Happiness. The latter recently launched CBD and hemp products across European markets such as the Netherlands, France, Italy, and the United Kingdom.

In addition, Bod revealed that an uptick in prescription volumes of its medicinal cannabis product, MediCabilis, contributed to the sound result.

In addition, the company says that both its cannabis medical division and CBD and Hemp consumer products are generating strong recurring revenue.

Bod further noted that sales growth is expected to continue in the current quarter and foreseeable future. This is backed by the company strategically entering new attractive markets while focusing on growth in Australian and United Kingdom medicinal cannabis sales.

Comments from the CEO

Bod CEO Jo Patterson, hailed the milestone, saying:

The progress achieved over the last quarter is a great result for Bod. The company has considerably broadened its international footprint, with new market entries into the Netherlands, France and Italy, as well as extended its product ranges in the UK. Further, we have increased sales of our medicinal cannabis products in Australia and are now benefitting from this growth.

Demand for our medicinal cannabis, and CBD and hemp products continues to escalate and we expect binding purchase orders to increase during the current period and the remainder of FY2021. Bod has also retained a strong cash balance, which will allow it to progress a number of initiatives including new market entries and product launches. We look forward to updating shareholders on progress over the coming months.

About the Bod share price

The Bod share price has gained 312% over its multi-year low of 12 cents reached in March last year, outperforming the All Ordinaries Index (ASX: XAO) in the same time frame.
Shares in the company hit an all-time high of 74 cents at the start of December.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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