CV Sciences, Inc.
The Nevada-based CBD producer brought in Q2 revenue of $16.9 million and that also represented a 13% sequential increase on Q1. Gross margin edged up by 0.1% to 70.9% and it recorded an operating income of $1.3 million in the second quarter of 2019, compared to $3.3 million in the second quarter of the prior year.
The decline in operating income was attributed to additional investment in sales, marketing, and research and development.
Its products, led by the bestselling PlusCBD Oil, increased distribution by 39% between Mar. 31 and June 30, 2019. “Year to date, we have more than doubled the number of retail doors where PlusCBD Oil products are carried and continue to enjoy a strong pipeline of new distribution opportunities,” said chief executive Joseph Dowling.
The firm, which has operations in Nevada and California, recently announced that it would increase production capacity fivefold by adding a new 45,500 sq. ft. facility.
It has also maintained a pipeline of new product development and it has launched nine new brands over the past year.
Dowling is most encouraged by regulatory developments across the U.S. over the past few months. He pointed to recent successes in highly populous states like California, Texas, and Ohio when highlighting the strong long-term future that hemp-based CBD products can enjoy.
There are still some ambiguities in a number of markets, but overall the U.S. is liberalizing its approach to CBD products on an ongoing basis, and this is reflected in increased retail listings for PlusCBD.
The brand also gained a boost when a study was published, demonstrating it can improve sleep, help reduce appetite and enhance the “quality of life in humans”.
CV Sciences generated $2.7 million of cash from operations, and its total cash balance increased to $15.7 million at quarter end.
CV Sciences’ share price closed at $4.09 yesterday and then opened at $3.44 when trading began today.
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