VANCOUVER, British Columbia, April 5, 2019 /PRNewswire/ -- Sunniva Inc. ("Sunniva", the "Company", "we", "our" or "us") (CSE: SNN) (OTCQB: SNNVF), a North American provider of cannabis products and services, is pleased to announce preliminary revenue of $14.0 million for the three month period ended March 31, 2019. This represents a 169% increase over the $5.2 million in revenue generated in the comparative three-month period from 2018. All figures are reported in Canadian dollars ($), unless otherwise indicated.
In California, Sunniva began selling cannabis products in the first three months of 2019 through its wholly-owned subsidiary, CP Logistics, LLC ("CPL") with preliminary revenue of $10.0 million (USD $7.5 million). Revenue was comprised of product sales from premium flower, vape cartridges and concentrates. In March, Sunniva unveiled its first three in-house brands, Sun Fire, KYNDNESS and Herbella, and announced that additional super premium brands will be launched in conjunction with production from the 325,000 sq. ft. purpose-built greenhouse under construction in Cathedral City, California (the "Sunniva California Campus").
The Company's other wholly owned subsidiaries, Full-Scale Distributors, LLC ("FSD") and Natural Health Services Ltd. ("NHS"), contributed first quarter 2019 revenue of $2.3 million and $1.7 million, respectively.
"In California, we now have the strategic pillars in place to ensure scalability and growth for our newly announced brands and we are very proud of our entire team for the execution and delivery of a very strong first quarter," said Dr. Anthony Holler, CEO of Sunniva. "Our $14.0 million in revenue during the first quarter is close to the total revenue generated by Sunniva in all of 2018. With strong leadership and operating assets producing premium cannabis products, supported by our recent distribution company acquisition, we continue to demonstrate our ability to achieve significant revenue growth and secure shelf space for our Sunniva brands throughout the state."
Gross profit margin for the first quarter is expected to be between 30-35% due to operational ramp up costs in California. However, Sunniva reiterates its 2019 revenue estimate in California through CPL of $72-$78 million (USD $55-$60 million), with an estimated gross margin of 40-50%. This estimate does not include revenue from FSD, the Sunniva California Campus and NHS.
Sunniva will be providing a full corporate update on its Canadian and US operations along with its fourth quarter 2018 and fiscal 2018 financial results to be released on April 29, 2019. First quarter 2019 financial results will be reported before May 30, 2019.
For more information please visit: www.sunniva.com
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
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