CV Sciences, Inc. (OTCQB: CVSI) sales fell in the quarter as demand for hemp-derived products continues to fade. The hemp operator announced its financial results for the quarter ending June 30, 2022.
CV Sciences delivered approximately $4.1 million in total revenue during the period, a loss of 19% versus the same period last year — missing the Yahoo Finance Average analyst estimate for revenues of $4.88 million.
The company said that the decline is primarily due to lower sales in the retail channel. The total number of units sold during the second quarter also decreased 5% compared to the same time last year. Other reasons for the decline included higher discounts for new product placements and changes in our sales mix to lower priced products.
CV Sciences also reported a second-quarter net loss of $2.7 million versus a $3 million loss sequentially; and a net loss of $3.5 million in the same period last year. The earnings were for a loss of two cents per share, versus a loss of three cents per share in the previous quarter.
“Second quarter results met our expectations and we are encouraged by improvements in the retail channel and very positive consumer response to several new product launches,” said CEO Joseph Dowling.
CV Sciences posted a gross margin of 30.7% for the second quarter versus 44.7% for the second quarter last year.
The operating loss fell to $2.3 million in the second quarter of 2022 versus an operating loss of $3.5 million in the second quarter of last year — mostly due to reductions in its selling, general and administrative expenses. The company posted an adjusted EBITDA loss of $1.8 million versus an adjusted EBITDA loss of $2.4 million in the second quarter last year. Last quarter’s figure was $2.5 million.
The company said it had a total cash balance of $1.1 million at quarter end, versus $1.4 million at year-end.
Despite the revenue loss, CV Sciences reiterated its position as a top-selling hemp extract brand in the natural product retail sales channel, according to SPINS scan data.
The company said it will continue to evaluate strategic review of its business, “including consideration of inbound and outbound merger, sale, acquisition or other options for the Company as a whole or for any business segments.”
“Our new OTC products, along with our Reserve Collection and Wellness Line of products are evidence of our strong pipeline, and demonstrate our ability to develop innovative products that address the need states of our consumers,” Dowling said. “Our flagship PlusCBD brand continues to gain market share in the natural product channel, and, with our portfolio of high-quality, proven products, and favorable regulatory momentum, we believe the Company is positioned for future growth.”