CV Sciences (CVSI) saw a 126% jump in revenue in its just reported fourth-quarter, due in large part to its continued push into the organic cannabis market.
The company, which has offices in Las Vegas and San Diego, said fourth-quarter sales came in at $7.24 million, up 126 percent year over year. Gross profit also experienced a huge jump, rising 187 percent year-over-year to $5.21 million.
These numbers were boosted by a 57 percent year-over-year increase in the company’s retail channels, bringing its distribution size to 1,548 stores by the end of the year.
Full-year 2017 fiscal results also set records, with revenue, gross margin, adjusted EBITDA and cash flow all rising sharply, according to a statement.
“We ended 2017 with tremendous momentum by hitting record metrics for Q4 and an overall impressive and record year. Our operating performance further validates our ability to grow profitably and generate cash flow,” said CV Sciences CFO Joseph Dowling in a statement.
Dowling continued: “In every aspect, we set new financial performance records and laid the groundwork for continued profitable growth. On the drug development side, we continue to make steady progress in advancing CVSI-007 – our proprietary lead drug candidate – which addresses the multibillion-dollar smokeless tobacco use and addiction market.”
The company bills itself into two categories: a drug development company, focusing on developing and commercializing novel therapeutics and a consumer product company. It also has four subsidiaries, including US Hemp Oil, LLC, Plus CBD, LLC and CannaVest Europe, GmbH, all which operate in different locations around the globe and in the company’s two distinct categories.
CVSI-007 is an important part of the company’s future, with the synthetic-based cannabidiol to be potentially used for treating smokeless tobacco use and addiction.
CV Sciences said this market is a “multi-billion market with no currently FDA-approved drugs available to help patients.”
In addition to the more than 1,500 retail stores for its natural products, CV Sciences is going to continue to expand its retail sales channels and said its branded products are providing encouraging results, which “positions the [c]ompany as the #l selling hemp product line in the natural products industry.”
CV Sciences, which trades over-the-counter under the ticker symbol “CVSI,” jumped 11.2 percent in Thursday trading, closing at 50 cents prior to the announcement. Shares are down for the year, however, closing at 62 cents on Jan. 2.