Veritas Farms Inc (OTCMKTS: VFRM) made an important announcement this morning. The company reported its financial results, showing incredible growth in revenue. Today, we’ll talk about:
- The news from VFRM;
- what this means for the stock; and
- what we’ll be watching for ahead.
VFRM Reports Compelling Revenue Growth
As mentioned above, Veritas Farms announced its financial results this morning. The results covered the three months ended March 31, 2019 and was provided via Form 10-Q with the SEC. Here’s what we saw from the report:
- Revenue – VFRM revenue for the quarter came in at $1,524,930. That figure showed incredibly strong growth over Q1 and Q4 of 2018, when the company reported revenue of $331,416 and $961,929, respectively.
- Gross Profits – Gross profits climbed 370.3% to $627,434, compared to $133,413.
- Assets – Assets also saw a nice gain from $7,014,086 at the end of December, 2018 to $7,870m935, a gain of 12.2%.
- Inventory – Finally, total inventory is up 15.8%, coming in at $2,658,581, comparing to $2,295,943 at the end of December.
In a statement, Alexander M. Salgado, CEO and co-founder at VFRM, had the following to offer:
Following our record setting revenue growth in 2018, Veritas Farms has emerged as one of the leading and most trusted fully-integrated hemp companies in the country. During the first three months of 2019, the Company continued to build on that strong reputation with the successful launch of the Veritas Farms™ brand of full-spectrum hemp extract products in some of the largest traditional brick-and-mortar retailers in the country, such as CVS Pharmacy stores.
That increased acceptance from mainstream consumers and traditional retail distribution channels helped boost Veritas Farms’ sales to new record levels again and added even more momentum to the entire sector. To leverage this enormous opportunity, the Company intends to increase its already considerable cultivation and manufacturing capacities, as well as expand its proven sales, marketing, and brand building programs.
The Company also has plans to launch two additional large-market full spectrum hemp extract product lines during the second half of the year. Both planned product lines are expected to achieve significant sales levels.
We are in a strong position for continued growth during the balance of 2019 as more people try our expanding line of Veritas Farms™ brand products each day for the first time. We are confident that our lab tested full-spectrum hemp extract products will exceed the high expectations of every consumer, health care provider, and distributor.
What This Means For The Company
At the end of the day, the strong revenue growth shows that Veritas Farms is executing well when it comes to the expansion of their products throughout the market. The company is also playing it smart with gains in assets and inventory.
As the CBD market continues to emerge, and VFRM gets its brands into big box stores like CVS, the stock has the potential to see tremendous growth.
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 story surrounding the company’s continued work to bring value to investors through impressive growth in revenues and profits. Nonetheless, we’ll keep a close eye on the story and bring the news to you as it breaks!
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