Plus Products Inc. (CSE: PLUS) (OTCQB: PLPRF) reported its results for the fourth quarter and calendar year ending December 31, 2018. The quarter’s revenues were $3.3 million and the company delivered a net loss of $2.9 million. This was an increase in sales of 770% over 2017 for the same time period and a 31% sequential increase.
The 2018 full-year revenues increased by 681% to $8.4 million versus the 2017 revenues of $1.1 million. Expenses grew to $7.9 million last year versus $2.5 million in 2017.
The company said that the revenue growth was attributed to sales of Plus Products’ concentrated brand portfolio of four full-time SKUs and one rotating seasonal. In addition, the company said it continued to increase its production capacity, which allowed its distributor to build up inventory to better service over 300 dispensary customers throughout California.
“We remain proud that PLUS had significant growth in both revenue and market share in a year where the greater legal California cannabis market shrank and underperformed expectations due to unclear regulations and an increase in underground market sales,” said Jake Heimark, co-founder & CEO of PLUS Products. “We look forward to greater regulation and increased enforcement in 2019 that will allow the legal industry to continue to prosper and help us continue on our mission of making cannabis safe and approachable for everyone.”
Plus Products said in its statement that according to retail analytics firm Headset, the PLUS Uplift Sour Watermelon gummy was the top-selling branded product of the more than 20,000 products sold across all cannabis categories in California in 2018. Also, according to BDS Analytics, PLUS “Uplift” and PLUS “Restore” remained the #1 and #2 best-selling edible products in California. Although PLUS had strong growth in 2018, BDS Analytics also found that in 2018 there were 17% less legal sales in California cannabis sales than in 2017 as the California market struggled with licensing challenges, regulatory changes, taxes, and new testing, labeling and packaging requirements.
Plus Products noted the following financial highlights in its statement:
- The company’s unaudited cash balance climbed to $22.4 million at the end of 2018, up from $0.2 million at the end of 2017 and $11.1 million as of September 30, 2018, prior to the initial public offering in October.
- Net working capital was $22.4 million at December 31, 2018 compared to a deficit of $0.1 million the previous year-end. Liabilities at year-end 2018 were only $2.2 million.
- The company raised $29.7 million in capital, net of capital raising costs, during 2018, including the initial public offering in October.
- The loss per adjusted uncompressed weighted average share climbed to $0.07 per share in the 4th quarter 2018, up from $0.05 per share in the 3rdquarter, totaling $0.23 per adjusted uncompressed weighted average share for 2018. The loss for 2018 was $2.9 million for the 4th quarter and $6.8 million for 2018.