Plus Products Revenue Rose 21% YoY Despite Drop In Nevada Sales

Cannabis company Plus Products Inc. PLUS PLPRF posted Thursday its unaudited financial and operational results for the second quarter and first half of fiscal 2020.

Over the year, net revenues of the San Mateo, California–based company went up by 21% to $4.3 million.

Plus Products attributed the revenue growth to operations in the California adult-use market. However, sales in Nevada suffered the impact of COVID-19, the company disclosed.

During the first six months of 2020, the company worked on “creating a sustainable economic foundation” while laying the “groundwork for current and future growth,” said Plus Product’s co-founder and CEO Jake Heimark.

“Plus continues to believe that California is the most strategically valuable market to build a cannabis brand,” added Heimark.

Other quarterly highlights from the earnings report

• Gross profits rose $1.6 million during the quarter compared to $0.7 in the same period last year
• The gross profit margin was 36%, an increase of 16% compared to the corresponding quarter of 2019
• The operating loss amounted to $1.4 million, a growth of 71% compared to the second quarter of last year
• Cash and cash equivalents were $13 million, down by $1.1 million, compared to the previous quarter

Meanwhile, over the past months, Plus Products broadened its PLUS CBDRelief’s product offering and introduced its new HI-CUBES concentrated gummy products.

In June, its VP of Finance, Nate Pearson, was appointed CFO, following the retirement of Jon Paul.

Courtesy photo