Despite an increase in product distribution, COVID-19 has still got a hold on revenue growth in the cannabis market.
CV Sciences, Inc. (OTCQB:CVSI), a preeminent supplier and manufacturer of hemp cannabidiol (CBD) products, today announced its financial results for the quarter ended September 30, 2020.
Third Quarter 2020 and Recent Operating Highlights
- Revenue of $5.6 million for the third quarter of 2020;
- E-commerce sales of $1.8 million for the third quarter of 2020;
- Gross margin of 44.2% for the third quarter of 2020;
- Maintained strong total cash balance of $6.1 million at quarter-end;
- Launched PlusCBDTM brand refresh and new products;
- Launched Happy LaneTM, a new THC-free CBD brand and product line for the convenience store channel;
- Launched CVTM Defense, a clinically supported immune formula which provides daily support; and
- Launched PlusCBDTM Pet, a full line of hemp extracts formulated exclusively for dogs and cats.
"We are pleased to deliver a return to modest sequential revenue growth during the third quarter and have been active with our product and business development activities. We are aggressively driving innovation to accelerate new product and category development. We have also enhanced our e-commerce activities, redesigning our CV Sciences website to support consumer sales of our growing immunity line and are actively working with new potential distribution partners and e-commerce retailers to broaden distribution. We remain confident in the long-term outlook for CBD and continue to support all efforts to drive industry-wide science and regulatory-support while leading with our industry-leading quality products," stated Joseph Dowling, Chief Executive Officer of CV Sciences.
Mr Dowling went on to say "We are developing distribution for our recent launch of Happy LaneTM, and continue to believe there is a significant opportunity in the convenience store channel for this value-priced brand. We expanded our offering in the immunity category, announced the launch of our pet line and have further new offerings slated for launch in the fourth quarter. I could not be more pleased with how the entire CV Sciences team has aggressively driven our growth efforts amid the daily challenges of the COVID-19 pandemic. Our focus remains on driving growth and shareholder value through our emphasis on quality, innovation, distribution expansion and category leadership."
Operating Results – Third Quarter 2020 Compared to Third Quarter 2019
Sales for the third quarter of 2020 were $5.6 million, a decrease of 56% from $12.6 million in the third quarter of 2019. Third 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 products were sold in 6,227 retail stores nationwide as of September 30, 2020, up from 5,435 stores as of September 30, 2019.
While future hurdles are difficult to forecast given the current environment, I am confident in our team's ability to adapt and continue to execute our key business strategies Joseph Dowling, Chief Executive Officer of CV Sciences
The Company recognized an operating loss of $3.2 million in the third quarter of 2020, compared to an operating loss of $1.8 million in the prior year.
The Company had negative adjusted EBITDA for the third quarter of 2020 of $2.3 million, compared to negative adjusted EBITDA of $0.9 million for the third quarter of 2019.
For the latest news and updates on CV Science, click here
Disclaimer: Past performance is not an indicator of future performance.
Get the Latest Marijuana News &
Content in your Inbox!
All your support helps The Green Fund keep writing content for all you
marijuana enthusiasts and potential pot stock investors