Revenues of $1.3 Million for Second Quarter 2020
91% Year-Over-Year Growth
CAVE CREEK, AZ , May 18, 2020 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE – Endexx Corporation (OTC: EDXC) (the "Company" or a/k/a " CBD Unlimited "), a lifestyle company focused on the intersection of science, compliance, and formulation of innovative phytonutrient-based food and nutritional products, today announced second-quarter results for the period ended March 31, 2020 .
"We are pleased to see CBD Unlimited's growth in Q2, as we took immediate and strategic actions to adjust to the current market condition," said Todd Davis , Chief Executive Officer and Chairman of Endexx . "In our second quarter of 2020, we experienced higher sales for our products through diversified channels, which increased our revenue by 91% year-over-year."
Mr. Davis noted, "The coronavirus challenged the hemp industry, as well as many other industries, with updated protocols for products sold in stores. New category requirements initially limited opportunities for CBD Unlimited products to be restocked due to the rise in essentials and hand sanitizer demand and priority for retailers. Despite this hurdle, we overcame it, and managed to meet customer demand. It is rewarding to see what comes out of the team's dedication and quick adaptation to change.”
"The primary focus for Endexx moving forward is the long-term health and well-being of our customers, investors, and partners. Through collaboration and thoughtful planning with our partners, all are focused to push through these unprecedented times together. With optimism and a drive to educate and provide consumers with safe, high-quality, reliable products, the future of the company’s direction is secured on a solid foundation," continued Davis.
Second Quarter 2020 Highlights
For the first half of 2020, the Company generated more sales than 2019 in its entirety. The gross revenue of $1.3 million in Q2 2020, compared to $680 thousand in Q2 2019, represents an increase of 91% year-over-year. The growth was driven by higher sales of CBD products and a more extensive consumer base from the growing wholesale activity and e-commerce platform.
The e-commerce platform launch provides both new and existing buyers with control over their individual subscription model. It allows customers the flexibility to manage their reorder cycle to extend or delay their subscription. Consumers enjoy the unique opportunity for dose and product experimentation. CBD Unlimited intends for the subscription model to encourage education about personal wellness and to discover the best, most optimally dosed products. The online platform offers users nearby store locations by entering zip code and mapping. In turn, the e-commerce platform supports both stores and options for delivery to the consumer.
During the quarter, the primary revenue growth was seen from the Company's CBD Premium Blue topical line, widely available in six thousand retail stores nationwide. The store count expanded in the second quarter, while the company expanded its topical product portfolio to ten SKUs in the premium line, super-premium line, and new value-line to meet the different stores' needs in regards to their individual customer base. Additionally, the Research and Development (R&D) team is currently in an initial testing phase for the upcoming Trail-R-Mix equine product line, expected to launch this year. The equine product testing commenced in January 2020 , led by equine professionals to evaluate delivery of CBD, to targeted areas of the body and to help reduce irritation to the GI Tract of the horse. This product development provides another important long-term growth channel for the Company.
CBD Unlimited has a significant amount of incremental opportunities related to distribution expansion and brand recognition in new territories. Market store expansion was around mid-five thousand into the end of the year and now accelerated into the six thousand count. The Company projects it will hit its twenty thousand targeted goal, in early fiscal 2021. Longer-term targets for store count expansion has increased to over 100,000 stores over the next 18-36 months. During this quarter, further advancements have taken place for international expansion with established contracts with distribution channels in North America , the Caribbean , and Polynesian markets for significant growth targets.
Outlook
CBD Unlimited has made consistent progress so far this year and is on track with financial and operative goals as well as store count and distribution plans. The COVID-19 pandemic initially interfered with regular protocol with regards to product and category reset, yet the hemp industry remains innovative and passionate to leverage the education of health and wellness with natural and anti-inflammatory products. The initial drawbacks associated with the pandemic encouraged CBD Unlimited to outline fiscally practical steps to adjust and prepare for the economy to run at its previous pace. Thus far, in the third quarter beginning, more retail channels proceed to reorder and restock products as natural food stores, grocery chains, and big-box pharmacies begin to position themselves in ways more vigorous than the calendar fourth quarter last year, signaling positive indicators for CBD Unlimited’s growth.
Acquisitions and key employees continue to be a primary activity for the company, providing sustainable scale and expertise in key operations within its corporate infrastructure. Lastly, the Company is preparing for a new market expansion program with an early stage roll-out, beginning in Q3, for the pharmaceutical, grocery/natural food channels, and independent retailers.
