CV Sciences Inc (OTCMKTS:CVSI) is rising again. The firm’s results in the last year have shown massive improvement in sales, higher margins resulting from stronger control measures and nice profits. All of this contributed to the jump in its value to $0.63 back in December. Considering its consistent performance, it should not be long before it surpasses its two year high of $0.8.
Take a look at the stock’s price action below:
CV Sciences, Inc. was established in December 2010 by H. J. Cole, Michael J. Mona, Jr. and Michael J. Mona III. Its head office is situated in Las Vegas, Nevada. The company focuses on two market areas, specialty pharmaceuticals and consumer products and engages in developing and commercializing proprietary prescription drugs utilizing synthetic cannabidiol (CBD) as the active pharmaceutical ingredient and is engaged in the development, manufacturing, marketing and sale of consumer products containing plant-based CBD, which is refined into its own proprietary branded products. For more details, visit our last post on the company here.
The firm reported that PlusCBD Oil™, its sector-leading brand of consumer products, would be on exhibition at the Natural Products Association Expo Northwest as a Platinum Sponsor by late 2017 at the Portland Marriott Downtown Waterfront in Portland, Oregon.
Expo Northwest was produced by Natural Products Association Northwest (NPA NW) and is one of the leading regional trade events in the natural, organic and healthy products industry with a history of consistent year-on-year growth. Natural Products Association Northwest provides education and networking prospects to natural foods merchants and suppliers from Oregon, Utah, Alaska, Colorado, Nevada, Washington, Idaho, Montana, and Wyoming.
As a result of the continued support from retailers in the US since the release of its dietary supplements brand as at 2014, PlusCBD Oil™, a leading brand of hemp-derived cannabinoid products in the natural channel according to researchers, has attained hugely positive results.
The Vice President of Human Nutrition, Stuart Tomc outlined that CV Sciences has become a Platinum Sponsor in the year due to its enormous sales. He added that management was proud to be a leader of hemp-derived cannabinoids in the region after three years of exhibiting at the show. This is embellished by the fact that the region is filled with natural health retailers who comprehend the exact potential of botanical nutrition and have chosen to take a chance on hemp.
In November 2017, the company was listed in Deloitte’s Technology Fast 500™, an annual ranking of the fastest growing North American companies in the telecommunications, life sciences, energy tech, technology, and media industries. The classification is done using the percentage of growth in revenue from the financial year 2013 to 2016. CV Sciences recorded a whopping 403% revenue growth within that time.
CV Sciences Chief Executive Officer, Michael J. Mona highlighted that management was pleased to be listed the fastest growing technology firms as it portrayed the firm’s leadership of the market and its commitment to creating products to enhance the health of patients. He reaffirmed that management would continue in its efforts to improve its current standing in the market.
This is the first time CV Sciences’ has been mentioned in the Deloitte’s Technology Fast 500™ list. Overall, however, all the firms featured on the list achieved growth along 135% to 59,093% within the period and an average increase of 380%.
In the last quarter, the firm recorded revenues of $5.6 million, an increase of 90% compared to the third quarter in 2016, a gross profit of $4.0 million an increase of 112% compared to 3Q2016.
It had an adjusted EBITDA of $0.88 million, an increase of $1.5 million compared to 3Q2016.
The high increase in revenue for 3Q2017 was a result of the firm’s expansion into various sales channels ranging from the natural product retail channel, wholesale and direct to consumer channels.
CVSI’s natural product retail channel has over 1,400 locations across the country. The firm intends to continue increasing its new sales channels, and this has been supported by the strength of its branded products shown by the SPINS® Scan data, which ranks the firm as the leader in the sale of hemp product within the Natural Products sector.
The gross profit shows the firm’s capacity to increase sales while maintaining healthy gross margins.
Adjusted EBITDA indicates strong operating leverage from the firm’s significant investment in inventory, product development, systems, marketing, and distribution.
Increasing revenues, declining costs, and higher profits are indicators that CV Sciences Inc (OTCMKTS:CVSI) is on the right track. Its research into investment in multiple sales channels is expected to support the firm’s momentum.
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Disclosure: We have no position in CVSI and have not been compensated for this article.