San Diego, CA—CV Sciences has announced financial results for the third quarter 2020 ended September 30. A press release notes a decrease in sales due to COVID-19 and several brand launches.
- Revenue of $5.6 million for the third quarter of 2020, a decrease of 56% from $12.6 million in Q3 2019;
- E-commerce sales of $1.8 million for the third quarter of 2020;
- Gross margin of 44.2% for the third quarter of 2020;
- Operating loss of $3.2 million, compared to an operating loss of $1.8 million in Q3 2019;
- Products were sold in 6,227 retail stores nationwide, up from 5,435 stores in Q3 2019;
- Maintained strong total cash balance of $6.1 million at quarter end;
- Launched PlusCBD brand refresh and new products;
- Launched Happy Lane, a new THC-free CBD brand and product line for the convenience store channel;
- Launched CV Defense, a clinically supported immune formula which provides daily support; and
- Launched PlusCBD Pet, a full line of hemp extracts formulated exclusively for dogs and cats.
The press release explained that sales were impacted by both the pandemic and increased market competition, and notes that competition is affected by the uncertain regulatory environment for CBD.
“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,” said CEO Joseph Dowling in the press release. “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. We are developing distribution for our recent launch of Happy Lane, 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.”
Dowling also thanked the CV Sciences team: “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. 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. Our focus remains on driving growth and shareholder value through our emphasis on quality, innovation, distribution expansion and category leadership.”