Personally, we have been rooting for CV Sciences Inc. CVSI since they were unfairly targeted by a short-seller. We wrote on two occasions about their upside and high-quality CBD oil, and now it seems like we are getting another reminder of their turnaround: record revenues.
Looking at the numbers
CVSI’s sales for the first quarter of 2019 were $14.9 million, an increase of 85% from $8.1 million in the first quarter of 2018. First quarter sales growth reflects the Company’s continued organic expansion into all sales channels, including food drug and mass, natural product retail, wholesale and direct-to-consumer channels. The Company’s retail store count increased to 3,308 stores nationwide at March 31, 2019, up from 2,238 stores as of December 31, 2018.
“We continued to expand retail distribution of the PlusCBD Oil™ brand and drive sales growth during the first quarter,” said Joseph Dowling, Chief Executive Officer of CV Sciences. “We generated 85% revenue growth over prior year, achieving another record quarter, with strong gross margin performance. The PlusCBD Oil™ brand is now available in over 3,300 stores nationwide, including national food, drug and mass merchandiser accounts. As anticipated, since the passage of the 2018 Farm Bill, we have seen significant interest in the hemp-derived CBD category across retailers and channels, and we are in discussions with multiple retailers for new retail placements. We are making the investments across the organization to position ourselves to capitalize on the growing retailer and consumer demand.”
What sets CV Sciences apart from competition in this space is the third-party testing that they have done on their products. We have written before on the growing number of small CBD companies who are entering the space without any third-party testing. This can lead to variants in product purity and even allow pollutants to get into the emulsion.
A First Mover in the Space
On the manufacturing side, CVSI has received a Certification Seal from the U.S. Hemp Authority Certification Board. Essentially, this seal is proof that the board has signed off on CVSI’s manufacturing and agricultural process. The product on the shelf has always been top notch as even ConsumerLabs.com ranked the company’s PlusCBD Oil™ Gold Softgels as one of the purest CBD products on the market.
“Considering the significant variations that have been shown in the amounts and quality of CBD in marketed products, we believe credible third-party analysis and certification is critical for establishing and maintaining customer trust,” said Joseph Dowling.
The company is also working on a smoke-cessation product that they believe is on track and will get a new drug application later this year or early 2020. As we have stated in previous articles, CVSI has strong upside and really is s first-mover in this space as there e-commerce site was up and humming long before the Farm Bill even passed.