Plus Products Reports Unaudited 2019 Third Quarter Results
San Mateo, CA – November 29, 2019 – 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 and nine months ended September 30, 2019, expressed in U.S. dollars. These filings are available for review on the Company’s SEDAR profile at www.sedar.com and with the Canadian Securities Exchange (the “CSE”).
Q3 Financial Highlights (amounts are approximate and are stated in U.S. Dollars, unless stated otherwise):
• Net Revenues climbed to $3.5 million in Q3 2019, representing a 38% year-over-year growth compared to Q3 2018 net revenues of $2.6 million. Gross Revenues increased to $3.9 million, representing a 50% year-over-year growth compared to Q3 2018 of $2.6 million. Discounts & Promotional expenses in Q3 2019 of $0.4 million were driven primarily by carryover of one-time costs from the launch of the PLUS Mints in Q2 2019.
• Gross profit was $0.4 million in Q3 2019, compared with $0.4 million in Q3 2018. Gross profit margin of 13% in Q3 2019 was down quarter-over-quarter from 20% in Q2 2019 due to start-up costs for the PLUS Hemp CBD launch and Nevada adult-use market launch, as well as the carryover promotional costs discussed above.
• Spending on operating expenses was $9.9 million in Q3 2019, up from $2.1 million in Q3 2018 due to one-time start-up costs associated with the rebranding of the PLUS cannabis line, the nationwide launch of the PLUS hemp CBD line, Nevada adult-use market launch and other investments in building talent, market share, infrastructure and financial capacity to support its future growth. Of these expenses, $3.5 million were one-time costs.
• The Company reported $22.3 million in cash and