CV Sciences continues to excel during challenging times.
CV Sciences, Inc. (OTCQB:CVSI), a preeminent supplier and manufacturer of hemp cannabidiol products, today announced its financial results for the quarter ended June 30, 2020.
We continue to effectively navigate the challenging industry and COVID-19 environment by controlling costs and accelerating new product and category development, while continuing to drive distribution growth for our PlusCBD brand. Joseph Dowling, Chief Executive Officer of CV Sciences
Second Quarter 2020 and Recent Operating Highlights
- Revenue of $5.4 million for the second quarter of 2020;
- E-commerce sales of $2.0 million for the second quarter of 2020;
- Gross margin of 43.0% for the second quarter of 2020;
- Maintained strong total cash balance of $8.1 million at quarter end;
- Received formal notice of patent issuance from USPTO for proprietary CBD and nicotine formulation and treatment of smokeless tobacco addiction;
- Launched CV™ Acute, a clinically researched wide spectrum proprietary plant-based formula which supports immune system and respiratory health;
- Launched Happy Lane™, a new THC-free CBD brand and product line for the convenience store channel; and
- Announced publication of two research studies demonstrating the safety and health benefits of PlusCBD™ products.
"During the quarter, we expanded distribution of our topical products with a leading southeast supermarket retailer and two national supermarket retailers, driving further growth of our store count to 6,325 stores nationwide, up from 5,799 at the end of the first quarter. We remain highly confident in the long-term outlook for the hemp-derived CBD category and will continue to position ourselves for the future of CBD as the regulatory environment continues to develop," stated Joseph Dowling, Chief Executive Officer of CV Sciences. "We are excited to expand our high-quality product development expertise into the immunity category with the recent launch of CV™ Acute, our first entry into the immunity category with additional products to follow. The immunity category for dietary supplements is a promising and growing category with strong consumer demand as consumers focus on their health and well-being during this pandemic. We are leveraging our years of product development expertise to deliver a superior solution for consumers. The product not only broadens our category exposure, but will also expand our distribution footprint. Additionally, earlier this week we announced the launch of our new Happy Lane™ product line, expanding our hemp-derived CBD portfolio that significantly broadens our channel opportunities, providing an attractive entry point to consumers. With these new and further planned product and brand launches, we see significant opportunity to broaden our national footprint and expand our market share in the CBD category. Beyond these recent new product and brand innovations, we continue to have a pipeline of new product innovation lined up for the 2nd half of 2020. We will continue to focus on expanding our distribution, products, categories and opportunity with a focus on driving growth and long-term shareholder value."
Operating Results – Second Quarter 2020 Compared to Second Quarter 2019
Sales for the second quarter of 2020 were $5.4 million, a decrease of 68% from $16.9 million in the second quarter of 2019. Second quarter sales were impacted by the current COVID-19 pandemic and increased market competition, which is largely due to the uncertain regulatory environment for CBD. The Company's retail store count increased to 6,325 stores nationwide as of June 30, 2020, up from 4,591 stores as of June 30, 2019.
The Company recognized an operating loss of $4.7 million in the second quarter of 2020, compared to an operating income of $1.3 million in the prior year.
The Company had negative adjusted EBITDA for the second quarter of 2020 of $3.2 million, compared to adjusted EBITDA of$3.6 million for the second quarter of 2019.
To learn more about CV Sciences, visit the company HQ here.
Disclaimer: Past performance is not an indicator of future performance.
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