Sunniva Inc. (CSE: SNN) (OTCQB: SNNVF) reported preliminary revenue of C$14.0 million for the quarter ending March 31, 2019. This represents a 169% increase over the C$5.2 million in revenue generated for the same time period in 2018. The company did not release any pross or net profit figures, but it did state that full figures for the fourth quarter and full-year 2018 would be released on April 29. The official first quarter results will be reported by May 30.
The company said that gross profit margins for the first quarter were expected to be between 30-35% due to operational ramp-up costs in California. Sunniva reiterated that its 2019 revenue estimate in California through CP Logistics of $72–$78 million (USD $55–$60 million), with an estimated gross margin of 40-50%. However, the estimate did not include revenue from FSD, the Sunniva California Campus or NHS.
“In California, we now have the strategic pillars in place to ensure scalability and growth for our newly announced brands and we are very proud of our entire team for the execution and delivery of a very strong first quarter,” said Dr. Anthony Holler, CEO of Sunniva. “Our $14.0 million in revenue during the first quarter is close to the total revenue generated by Sunniva in all of 2018. With strong leadership and operating assets producing premium cannabis products, supported by our recent distribution company acquisition, we continue to demonstrate our ability to achieve significant revenue growth and secure shelf space for our Sunniva brands throughout the state.”
In California, Sunniva began selling cannabis products in the first three months of 2019 through its wholly-owned subsidiary, CP Logistics, LLC with preliminary revenue of C$10.0 million (USD $7.5 million). The company reported that revenue came from the sales of premium flower, vape cartridges and concentrates. In March, Sunniva unveiled its first three in-house brands, Sun Fire, KYNDNESS and Herbella, and announced that additional super premium brands would be launched in conjunction with production from the 325,000 sq. ft. purpose-built greenhouse under construction in Cathedral City, California.
Sunniva said that its other wholly-owned subsidiaries, Full-Scale Distributors, LLC, and Natural Health Services Ltd., contributed first quarter 2019 revenue of $2.3 million and $1.7 million, respectively.