CV Sciences Enjoys Strong Q2 Revenue Growth

CV Sciences, Inc. enjoyed 36% year-on-year revenue growth for the second quarter of 2019 after increasing retail distribution to 4,591 stores.

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.

The opinions provided in this article are those of the author and do not constitute investment advice. Readers should assume that the author and/or employees of Capital 10X hold positions in the company or companies mentioned in the article. For more information, please see our Content Disclaimer.

Martin Green
Martin Green is an experienced journalist with a strong focus on the cannabis, alcohol, and gambling industries. He is particularly interested in the political issues affecting the global marijuana trade, and he has a keen focus on regulation changes and legal topics. He holds a BA English Literature, MA Creative Writing and a National Qualification in Journalism diploma. He has worked in journalism since 2009 and written for a broad range of newspapers, business titles and magazines, including The Sun, The Metro, The Journal, Livestrong, Drinks Retailing News, Harpers, Sportsbook Review, Vital Football, Essex Live and Surrey Live.

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