CBD Global Sciences, Inc. today announced the release of financial and operational results for the third quarter ended September 30, 2019. These filings are available for review on the Company’s SEDAR profile at www.sedar.com. All amounts are expressed in U.S. dollars.
Financial Highlights
For the nine months ended September 30, 2019 revenue growth of 800% increase to $4.9 million from $600,000 revenue in all of fiscal 2018.
- The increase is attributed to a larger crop size, more effective farming methods, and the harvesting of plants for smokable and pre-rolled products.
- A larger variety of products sold in 2019 versus 2018.
- Addition of CBD products, smokable bud and clones sold in 2019.
- A larger crop harvest in 2018 (sold in 2019) versus crop harvest in 2017 (sold in 2018).
- The 2019 crop is larger and more potent than 2018.
Gross Profit (before fair value adjustments) increased to 74% in 2019 from 4.9% in 2018.
- This was a direct result of increase in the sales price per pound with the addition of smokable CBD products and increased consumer demand.
Assets and inventory:
- Larger amounts of biomass were harvested per plant in 2019 versus in 2018.
- Potency of CBD per plant continues to increase year over year.
- The higher the potency of the plant generally will lead to more efficient processing of the plant into CBD oil, which may translate to a higher plant value.
- A small increase in cost of production per plant of $2.62 in 2019 versus $2.42 in 2018, due to a larger labor base.
Third Quarter 2019 Business Highlights:
- The Aethics brand products have expanded into new States and locations with current and new retail partners which includes 248 news stores in Q3.
- This includes 238 major airports across the U.S.
- Reorders are already coming in which presents strong sell through with the selected products.
- Increased product depth with new CBD performance drops, hydration drinks, and lotions.
“In an increasingly crowded and confusing CBD market, brands matter, and CBD Global continues to be a trusted provider of high-quality CBD product,” said Brad Wyatt, CEO of CBD Global Sciences. “Consumers are becoming more informed on choices of product in the CBD market space and are directing their purchases to the highest quality product and best value proposition.”
