ACCESS Newswire
14 Apr 2021, 15:35 GMT+10
Strong Gross Margin of 84%
Efficiencies and Lower Expenses Lead to a Significant Reduction in Operating Loss
HICKSVILLE, NY / ACCESSWIRE / April 14, 2021 / Can B Corp. (OTCQB:CANB) ('Can B' or the 'Company'), a diversified health and wellness company, announced today operating and financial results for the year ended December 31, 2020.
'As it was for many companies, 2020 was a challenging year for us,' commented Marco Alfonsi, Can B's Chief Executive Officer. 'We took the time to right-size our expenses, focus our energy on higher margin revenue opportunities and improve our positioning for future growth and profits.'
Mr. Alfonsi continued, 'As an integrated Health & Wellness company providing the highest quality cannabidiol (CBD) products as well as traditional wellness products our business pipeline remains strong. We are optimistic for growth with a return to more normalcy as more and more restrictions ease from the Covid-19 pandemic. We look forward to leveraging our R&D and production facility in Lacey, WA for both our own products and private label for others.'
Key Recent Highlights:
Financial Highlights for the Year Ended December 31, 2020 vs. 2019:
Can B offers several lines of branded CBD products that include tinctures, salves, topicals, skin care products. These brands include Canbiola, developed for the medical community; Seven Chakras, a spa and beauty line; NuWellness for independent Pharmacies, Pure Leaf Oil their flagship consumer brand and Super Foods, a line of nutritional supplements. The Company deploys a multi-channel distribution strategy with products sold via doctors, medical facilities, retailers, online, and direct to consumer.
Key Events Subsequent to the End of 2020:
Financial Results for the Year Ended December 31, 2020:
Revenue for the year ended December 31, 2020 was $1,709,669, a decrease of $595,834 or 26%, compared to $2,305,503 for the year ended December 31, 2019. The decrease was due to the COVID-19 pandemic. Essentially, nationally elective surgeries were curtailed in favor of emergency use of all operating rooms and facilities, which dramatically curtailed the use of our ultrasound device associated with patient recovery. Additionally, distributor and medical office sales of our main-line CBD products such as tinctures and salves, were diminished due to closing and limited access to medical office facilities, again directly tied to the COVID pandemic.
Gross profit for the year ended December 31, 2020 was $1,431,607, resulting in a gross margin of 83.7%, compared to $1,706,919 and 74.0% for the year ended December 31, 2019. Absolute gross profit decreased due to an oversupply of Hemp and CBD biomass in the market. Gross margin increased due favorable product mix to higher margin products and outreach into additional market segments such as wholesale and private label opportunities.
Operating expenses for the year ended December 31, 2020 were $5.8 million, a decrease of $1.8 million or 24%, compared to $7.6 million for the year ended December 31, 2019. This decrease was mainly attributable due to a decrease of $2.8 million in officer's, director's compensation and consulting fees.
Operating loss for the year ended December 31, 2020 was $4.4 million, a decrease of $1.5 million or 26%, compared to $5.9 million for the year ended December 31, 2019.
Net loss for the year ended December 31, 2020 and 2019, was $5.7 million and $5.9 million, respectively, a decrease of $0.2 million, or 3%. The resulting EPS loss for the year ended December 31, 2020 was a ($1.36), as compared to an EPS loss of ($2.20) for the year ended December 31, 2019.
About Can B Corp.
Can B Corp. (OTCQB:CANB) is a Health & Wellness company providing the highest quality cannabidiol (CBD) products under the brands of Canbiola, Seven Chakras, NuWellness, Pure Leaf Oil and Duramed. Can B utilizes multi-channel distribution to reach consumers, including medical facilities, doctor offices, retailers, online and direct. Can B is also a license holder of the LifeGuard® Brand in developing a line of consumer products. The Company has launched Super Foods, a line of nutritional supplements. Can B Corp. owns and operates an R&D and production facility in Lacey, WA and Green Grow Farms, a licensed hemp grow and cultivation in New York. To learn more about Can B Corp. and our comprehensive line of high quality CBD products, please visit: Canbiola.com and www.CanBCorp.com, follow Can B Corp on Instagram and Facebook, or visit one of the 1,000+ retail outlets that carry Can B Corp. products.
For more information about Can B Corp., please visit CanBCorp.com.
Twitter @CanBCorp
Instagram @canbcorp
Facebook @ Can B Corp
Youtube
Forward-Looking Statements
Forward-looking statements and risks and uncertainties discussed in this release contain forward-looking statements. The words 'anticipate,' 'believe,' 'estimate,' 'may,' 'intend,' 'expect,' and similar expressions identify such forward-looking statements. Expected, actual results, performance, or achievements could differ materially from those contemplated, expressed, or implied by the forward-looking statements contained herein. Forward-looking statements are subject to a number of risks and uncertainties, including but not limited to, risks and uncertainties associated with, among other things, the impact of economic, competitive, and other factors affecting our operations, markets, products, and performance. The matters discussed herein should not be construed in any way, shape or manner of our future financial condition or stock price. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.
Investors and Media:
[email protected]
(917) 658-7878
SOURCE: Can B Corp.
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