Veritas Farms Inc (OTCMKTS: VFRM), a full-spectrum CBD company that recently hit the CNA Finance radar, reported its earnings this morning. The report proved to be overwhelmingly positive, further validating our positive opinion. Today, we’ll talk about:
- The financial results;
- what we’ve seen from VFRM as of late; and
- what we’ll be watching for ahead.
VFRM Reports Financial Results
As mentioned above, Veritas Farms is likely to have a strong day in the market today after reporting its fourth quarter results. Here’s what we saw from the report:
- Revenue Growth – During the quarter, the company saw incredibly strong revenue growth, reporting revenue of $961929. That figure climbed 170% year over year from $355.653 million.
- Cost Declines – VFRM also greatly reduced its costs. During the quarter, the company said that the cost of goods sold came in at $311,742. In Q4 of 2017, this figure came in at $555,932, representing a 44% decline in cost of goods sold.
- Gross Profit – Gross profit came in at $650,177, showing strong growth from a loss of $200,278 in the same quarter last year.
- Inventory – The company currently has $2,295,943 in inventory on hand. That figure is up 61% year over year from $1,428,758.
- Liabilities – Finally, the company reported liabilities of $800,693. Liabilities are down 62% year over year from $2,102,454.
In a statement, Alexander M. Salgado, CEO and co-founder at VFRM, had the following to offer:
As we continue to emerge as one of the leading fully-integrated full spectrum industrial hemp extract companies in the country, this past fourth quarter’s results have been our best ever with large increases in total revenue, gross profits, and inventory levels, while at the same time, reducing our cost of goods, accounts payable, and total liabilities. When compared to our fourth quarter numbers from last year, our growth has been remarkable.
This outstanding growth rate is not restricted to our year-over-year results. Compared to our previously reported quarterly period, Q3 2018, our total revenues more than doubled by 109% and gross profits jumped by over 645%.
These accomplishments were the direct result of the hard work of our dedicated team and partners, along with significant new capital investments at our Colorado facility, the successful launch of our own Veritas Farms™ branded product line, and our targeted sales and marketing programs.
Following the signing of the 2018 United States Farm Bill in late December 2018 by President Trump that provided a federal legal framework for industrial hemp, we expect that our growth and expansion plans will continue to gain momentum throughout 2019 as more and more mainstream retailers, drug stores, and health care providers begin to sell and promote hemp extract products to their customers across the country.
What We’ve Seen From VFRM As Of Late
Recently, the action on Veritas Farms has been overwhelmingly positive. In the past month, the stock has climbed from $0.39 per share to more than $0.50 per share. Considering the strong earnings report, it is expected that these gains will continue.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on VFRM. In particular, we’re interested in following the company’s continued growth as the CBD market in the United States continues to emerge and following the strong performance seen in Q4 of 2018. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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