San Diego based CBD manufacturing company, CV Sciences, earned a $8.3 million revenue in the first quarter of 2020. Compared to the previous year’s sale of a whopping $9.4 million, the company reported a sale of $8.2 million in latest financial fiscal. Loss of almost 5 cents per share, along with an operating loss of $5.3 million, was suffered by the company.
According to their CEO, Joseph Dowling, in spite of having increased the number of nationwide retail stores from 3308 to 5799, the results are to be blamed on the increase in market competition, the lack of certainty in CBD regulations as well as the ongoing impact of the pandemic. Dowling further said that, owing to continuous market pressure from their competitors, the company managed to earn a revenue of $8 million, which exceeded their revenue projections of $6 million.
Dowling stated, “Over the past months, we have taken quick action to right-size our operations for the near-term industry outlook and to adapt our operations for the ever-changing operating environment created by the current global health crisis”.
COVID-19 made the company take up heavy strategies in e-commerce sales which made up for 24% of their total revenue, which was an increase of 15% from the same quarter in 2019. The company even launched an updated version of its +PlusCBD Oil website in the month of January, to keep up with the increase in e-commerce sales.
CV Sciences’ formulation of CBD and nicotine aims to treat smokeless tobacco addiction. Its pharmaceutical development business recently received a notice of allowance from the U.S. Patent and Trade Office for its patent. Towards the end of 2019, CV Sciences stated that they delay their pharmaceutical product development and curtail expansion to reduce operating expenses.
This publicly traded company received the Small Business Administration’s Paycheck Protection Program loan last week which made them come under pressure. Although CV Sciences still pursues the Nasdaq listings, they trade on over-the-counter markets, using the ticker symbol of CVSI.
Available here are the latest reports of CV Sciences’ earnings.