CV Sciences reports 18% revenue drop for ‘challenging’ 2021
The reported decline in sales for 2021, which dropped from $24.4 million in 2020 to $20.0 million last year, were chalked up to increased market competition, which is largely due to the uncertain regulatory environment for CBD, said the company.
However, fourth quarter sales declined just 4% to $5.0 million compared to $5.2 million in the prior year period.
CV Sciences had negative adjusted EBITDA for fiscal 2021 of $10 million, compared to negative adjusted EBITDA of $12 million in 2020.
Despite a challenging 2021, the company did increase its retail distribution from 7,300 stores as of December 31, 2020, to more than 8,400 stores as of December 31, 2021. A new distribution deal with GNC was also announced at the end of 2021.
A number of new products were also launched last year by the company, including ProCBD (a health practitioner channel product line), PlusCBD Calm and Sleep (gummies for stress management and sleep), and PlusCBD Reserve (a new line of full spectrum hemp extracts ).
“Significant headwinds stemming from the pandemic and competitive environment”
“During a challenging 2021, we focused on building for the future with several key initiatives, including: introduction of new products, and expansion in existing and new B2B sales channels with distribution in over 8,400 US retail locations,” stated Joseph Dowling, Chief Executive Officer of CV Sciences, in a press release.
“Our focus on product quality and innovation helped broaden our business in 2021, driving solid distribution gains despite significant headwinds stemming from the pandemic and competitive environment.
“Despite near-term challenges and uncertainties, we have positioned our Company to participate in the consolidation and brand contraction of the CBD market by continuing to implement on our key strategic initiatives and leveraging core competitive advantages to drive long-term growth and shareholder value, ” added Dowling.
2021 also saw CV Sciences enter into a partnership with Alkemist Labs to support the National Institute for Standards and Technology’s Cannabis Quality Assurance program. The company also received NutraIngredient-USA 2021 Product of the Year: Immune Support Award for its CV Defense immune support product.
New product launches for 2022 were also announced, including PlusCBD pain relief topicals and PlusCBD Relief softgels.