SAN DIEGO, May 22, 2019 /PRNewswire/ -- Medical Marijuana, Inc. (OTC: MJNA), the first-ever publicly traded cannabis company in the United States, announced today its financial results for the quarter ending March 31, 2019, and provided an overview of recent operational highlights.
First Quarter 2019 Financial Highlights
- Record sales revenue of $20,227,918 in the first quarter of 2019, a 92% increase over the same quarter in 2018;
- Cost of Goods Sold decreased as a percentage of sales from 31% in Q1 of 2018 to 22% in Q1 of 2019, resulting in gross profit margins increasing 13% as compared to Q1 2018;
- Sales & Marketing expenses decreased from 58% of sales in Q1 2018 to 51% of sales revenue in Q1 of 2019;
- General & Administrative expenses decreased from 23% of sales in Q1 2018 to 20% of sales revenue in Q1 of 2019;
- Net Ordinary Income for the period was $1,524,347, the company's best result for Net Ordinary Income to date.
The Company showcased strong growth throughout the quarter, as Q1 2019 sales revenue exceeded $20.2 million, an increase of more than 92% over Q1 2018. The company executed on a strategic profitability and sales growth plan which resulted in gross margins increasing from 69% in Q1 of 2018 to 78% in Q1 of 2019 as well as decreased Sales & Marketing and General & Administrative Expenses as they relate to percentage of sales revenue.
Additionally, Medical Marijuana, Inc.'s wholly-owned subsidiary Kannaway® experienced significant growth in sales revenue, showing an increase of approximately 130% as compared to the same period last year.
"The first quarter of 2019 proved to be the largest sales revenue quarter in the history of our Company," said Dr. Stuart Titus, Chief Executive Officer of Medical Marijuana, Inc. "We are pleased to see this level of growth our company has experienced as the world continues to open up to the benefits of hemp-derived CBD."
"I could not be more excited to share these results with our valued shareholders," said Blake Schroeder, Chief Operating Officer of the Company. "Even more thrilling is the fact that we are able to show not only significant growth but profitability. This was a major focus for us when we started the year and implemented a strategic expansion plan with lofty targets. We are not only reaching these targets but surpassing them."
Q1 2018 – $10.5 million
Q1 2019 – $20.2 million
Cost of Goods Sold
Q1 2018 --$3.3 million, which represents 31% of sales
Q1 2019 – 4.4 million, which represents 22% of sales
Q1 2018 – $3.3 million
Q1 2019 – $15.8 million
Q1 2018 – 68.84%
Q1 2019 – 78.22%
Sales & Marketing Expense
Q1 2018 – $6.1 million, which represents 58% of sales
Q1 2019 – $10.3 million, which represents 51% of sales
General & Administrative Expense
Q1 2018 – $2.4 million, which represents 23% of sales
Q1 2019 – $3.9 million, which represents 20% of sales
Net Ordinary Income/(Loss):
Q1 2018 – ($1.3 million)
Q1 2019 – $1.5 million
Q1 2018 – ($134.5 million)
Q1 2019 – $9.5 million
First Quarter 2019 Operational Highlights
The Company achieved many accomplishments in Q1 2019, including becoming the first company to have its cannabidiol (CBD) products listed in the Prescribers' Digital Reference®. In addition, the Company and its subsidiaries HempMeds®, Kannaway® and Dixie Botanicals have become some of the first companies to receive a Certification Seal from the U.S. Hemp Authority, by launching our most potent CBD product in the history of the Company - Real Scientific Hemp Oil™ (RSHO™) Maximum Strength. Finally, we signed an agreement with national distributor Mr. Checkout to be part of its distribution network of over 35,000 retailers.
Medical Marijuana, Inc. also garnered positive news coverage in several national and international publications including Yahoo Finance, International Business Times, CNBC, Medium, PBS NewsHour, Forbes, Entrepreneur, Bloomberg, Boston Globe, Benzinga, ABC News and the San Diego Union-Tribune.
About Medical Marijuana, Inc.
We are a company of firsts®. Medical Marijuana, Inc. (MJNA) is a cannabis company with three distinct business units in the non-psychoactive cannabinoid space: a global portfolio of cannabinoid-based nutraceutical brands led by Kannaway® and HempMeds®; a pioneer in sourcing the highest-quality legal non-psychoactive cannabis products derived from industrial hemp; and a cannabinoid-based clinical research and botanical drug development sector led by its internal R&D and scientific team and its pharmaceutical investment companies and partners including AXIM® Biotechnologies, Inc. and Kannalife, Inc. The Company's flagship product Real Scientific Hemp Oil™(RSHO™) is one of the top three cannabis brands in the U.S., according to Forbes, and the Company was also named a top CBD producer by CNBC. Medical Marijuana, Inc. was also the first company to receive historic import permits for CBD products from the governments of Brazil, Mexico, Argentina, and Paraguay and is a leader in the development of international markets. Medical Marijuana, Inc.'s headquarters is in San Diego, California, and additional information is available at OTCMarkets.com or by visiting www.medicalmarijuanainc.com.
To see Medical Marijuana, Inc.'s corporate video, click here.
Shareholders and consumers are also encouraged to buy CBD oil and other products at Medical Marijuana, Inc.'s shop.
This press release may contain certain forward-looking statements and information, as defined within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the Safe Harbor created by those sections. This material contains statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. Such forward-looking statements by definition involve risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Medical Marijuana, Inc. to be materially different from the statements made herein.
FOOD AND DRUG ADMINISTRATION (FDA) DISCLOSURE
These statements have not been evaluated by the FDA and are not intended to diagnose, treat or cure any disease.
Medical Marijuana, Inc. does not sell or distribute any products that are in violation of the United States Controlled Substances Act (US.CSA). These companies do grow, sell, and distribute hemp-based products and are involved with the federally legal distribution of medical marijuana-based products within certain international markets. Cannabidiol is a natural constituent of hemp oil.
SOURCE Medical Marijuana, Inc.