San Diego, CA—CV Sciences has reported its financial results for the second quarter ended June 30, 2020.
- Revenue of $5.4 million for the second quarter of 2020, a decrease of 68% compared to the second quarter of 2019;
- E-commerce sales of $2.0 million for the second quarter of 2020;
- Gross margin of 43.0% for the second quarter of 2020;
- Operating loss of $4.7 million, compared to an operating income of $1.3 million in Q2 2019;
- Maintained strong total cash balance of $8.1 million at quarter end.
A press release from the company explained that sales were impacted by the COVID-19 pandemic, as well as increased market competition, “which is largely due to the uncertain regulatory environment for CBD.”
“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,” said Joseph Dowling, Chief Executive Officer of CV Sciences, in the press release. “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.”
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In non-financial news, CV Sciences has:
- 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.
“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,” Dowling said. “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,” Dowling continued. “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.”