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Plus Products Reports Preliminary 2018 Unaudited Revenues of US$8.4 Million
Plus Products’ anticipated annual revenues expected to grow approximately 684% while total California cannabis sales declined 17% year-over-year in 2018
SAN MATEO, Calif., March 26, 2019 (GLOBE NEWSWIRE) — Plus Products Inc. (CSE: PLUS) (OTCQB: PLPRF) (the “Company” or “Plus Products”), today provides its unaudited revenue estimate for the fiscal period ended December 31, 2018 of US$8.4 million. This unaudited revenue represents substantial growth of 684% when compared to fiscal 2017 revenues of US$1.1 million.
Revenue estimates for the fourth quarter of 2018 was $3.4 million, representing an approximately 32% anticipated increase above the third quarter of 2018 and 776% above the fourth quarter of 2017. The revenue growth was driven by sales of Plus Products’ concentrated brand portfolio of four full-time SKUs and one rotating seasonal.
The Company’s unaudited cash balance climbed to $22.9 million at the end of 2018, up from $0.3 million at the end of 2017 and $11.1 million as of September 30, 2018, prior to the initial public offering in October.
Preliminary unaudited operating expenses rose 67% in the fourth quarter versus the third quarter of 2018 due to professional fees related to the initial public offering, costs incurred on market research and future brand development, and increased wages and shared based compensation expense for management personnel brought on board around the start of the fourth quarter.
According to BDS Analytics, the company’s retail sales in the fourth quarter were $10.53 million, an increase of 39.6% over the third quarter of 2018.
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. 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 Uplift was the top branded product of more than 20,000 products sold in California, according to Headset,
We are proud that in a year where the greater legal California cannabis market shrank and underperformed expectations, PLUS had significant growth in both revenue and market share. When the legal market shrinks in its first year of enforcement, the most likely culprit is an increase in underground market sales as some businesses struggle to figure out how to adapt to the new legal landscape.
Jake Heimark, co-founder & CEO of PLUS Products
We believe regulation is ultimately best for the consumer because it ensures businesses will be held accountable to create safe products that are consistent in quality and dosage. For the legal industry to grow and thrive, regulation needs to be uniform and clear so that businesses of all sizes can adapt, and we hope that in 2019 increased enforcement and regulatory clarity will help drive growth in the legal market and help make cannabis safe and approachable for everyone.
PLUS supports regulation in the cannabis industry and actively collaborates with regulators. The company recently rolled out child-resistant tins a year ahead of the California deadline, and it participated in the National Cannabis Roundtable with John Boehner as honorary chairman last month.
PLUS is a cannabis branded product manufacturer dedicated to making cannabis safe and approachable. The Company’s annual audited financials will be available prior to April 30, 2019 and consolidated financials for the first quarter will be available prior to May 31, 2019.
The preliminary estimated revenue and other data for the 12 months ended December 31, 2018 set forth above are subject to the completion of the Company’s financial closing procedures and was approved by management on March 20, 2019. The estimated revenue is not audited or reviewed, and no auditors have expressed an opinion or provided any assurance with respect thereto. The final results of operations could differ materially from these estimates due to financial closing procedures, final adjustments and other developments that may arise between now and the time such audited consolidated financial statements for the year ended December 31, 2018 are issued.
About Plus Products
PLUS Products creates safe and delicious cannabis food products. PLUS’s mission is to make cannabis safe and approachable – that starts with high-quality products that deliver consistent experiences. The gummies are manufactured at PLUS’s own factory in Adelanto, CA, where dosage is tested twice internally and then tested twice again by an independent lab. PLUS is headquartered in San Mateo, CA with 60 employees.
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