Plus Products Reports Third Quarter 2020 Financial Results
PLUS achieves 40% gross margins and first adjusted-EBITDA positive month
San Mateo, CA – November 23, 2020 – Plus Products Inc. (CSE: PLUS) (OTCQX: PLPRF) (the “Company” or “PLUS”), a cannabis branded products company in the U.S., today released its unaudited financial and operational results for the three months ended September 30, 2020, expressed in U.S. dollars. These filings are available for review on the Company’s SEDAR profile at www.sedar.com and on the Canadian Securities Exchange (the “CSE”) website at www.thecse.com.
Q3 2020 Financial Highlights
Revenues: Net revenues reached $3.7M in Q3 2020, up from Q3 2019 net revenues of $3.5M. During the period, the Company continued to have strong cannabis revenues in the California adult-use market with contributions from the Nevada adult-use market and its national hemp CBD product line. In July, the Company increased the wholesale price of its core product line, resulting in a temporary slow-down in sales during the first two months of the period. The Company exited the period with strong sales in the final month and expects Q4 2020 net revenues to exceed $4.0M. Gross Profits: Gross profits climbed to $1.4M in Q3 2020, up from $0.5M in Q3 2019. Gross profit margin was 40% in Q3 2020, up from 13% in Q3 2019. Reduced costs per unit derived from operating at increased scale, along with a higher average selling price per unit, continues to drive the improvement in profitability. Operating Profits (Losses): Operating losses were $(1.5M) in Q3 2020, representing an 84% improvement year-over-year from $(9.5M) in Q3 2019. Cash Balance: The Company reported $12.6M in cash and cash equivalents at September 30, 2020. Cash and cash equivalents fell by $0.4M during the third quarter.
Q3 2020 Business Highlights
In July 2020, the