Kannaway’s Holding Medical Marijuana 2019 Sales Up 26,3% To $75.6 Million

  • April 30, 2020
  • By Team Business For Home
Kannaway's Holding Medical Marijuana 2019 Sales Up 26,3% To $75.6 Million

Medical Marijuana, Inc. (OTC: MJNA) (the “Company”), the first-ever publicly traded cannabis company in the United States that launched the world’s first-ever cannabis-derived nutraceutical products, brands and supply chain, announced today financial results for the quarter and year ending Dec. 31, 2019, and provided an overview of recent operational highlights.

Year-End 2019 Financial and Operational Highlights

  • Generated $75.6 million in net revenue in 2019, a 26.3% increase year-over-year when compared to 2018;
  • GAAP Net income increased to $84.4 million;
  • Company reported positive adjusted EBITDA of $139 thousand as compared to a loss of $1.2 million in 2018
  • GAAP Gross profit for the year was $57.7 million, an increase 900 basis points over 2018;
  • GAAP General & Administrative expense decreased as a percentage of sales from 24.1% in 2018 to 16.9% in 2019;
  • GAAP Sales & Marketing expense decreased as a percentage of sales from 56.6% in 2018 to 54.6% in 2019;
  • Cash position at the end of 2019 was $5.8 million, an increase of 35.2% over 2018;
  • Pharmaceutical investment company Kannalife, Inc. began trading on the OTC Venture Market under the ticker symbol “KLFE,” adding to the Company’s Other Assets in Investments – Equities Securities
  • Achieved positive results from a one-year milestone in long-term stability testing on its flagship THC-free CBD oil product Real Scientific Hemp Oil-X™ (RSHO-X™)
  • CEO Dr. Stuart Titus was invited to speak at the FDA Hearing on Cannabis and CBD Products in May 2019
  • Subsidiaries HempMeds®, Dixie Botanicals® and Kannaway® received the U.S. Hemp Authority Certification Seal
  • Subsidiaries HempMeds® and Kannaway® became the first companies to have their CBD products listed in the Prescribers’ Digital Reference

“In 2019, Medical Marijuana, Inc. and its subsidiaries continued to execute on our strategic growth and fiscal responsibility action plan that rendered our best results yet and I could not be more excited to share them with shareholders,” said Medical Marijuana, Inc. CEO Dr. Stuart Titus. “We were able to not only generate increased revenues but focus on our bottom line by making strategic adjustments to expenditures.”

“In addition to our success in the U.S., our international operations have continued to flourish in Europe, Latin America and we are excited for our development in Asia,” said Medical Marijuana, Inc. COO Blake Schroeder. “We hope that these efforts will continue to build shareholder value and help bring our industry-leading products to broader audiences worldwide.”

Operating Results – Year-End 2019 Compared to Year-End 2018
Sales for 2019 exceeded $75.5 million, an increase of 26.3% over 2018. The Company executed on a strategic plan that resulted in gross margins increasing from 67.4% in 2018 to 76.4% in 2019.

Financial Data: Year-End 2019 Compared to Year-End 2018 Numbers
(in thousands)
Gross Revenue:
2019 – $75,560
2018 – $59,825

Cost of Goods Sold:
2019 – $17,829
2018 – $19,485

Gross Margin:
2019 – 76.4%
2018 – 67.4%

Net Ordinary Income/(Loss)
2019 – $3,298
2018 – ($8,018)

In 2019, Medical Marijuana, Inc. had a number of significant accomplishments, including:

Medical Marijuana, Inc. subsidiary Kannaway® was the first direct sales company to offer phyto-cannabinoid botanical products to consumers. Kannaway® encourages its brand ambassadors to create their own successful distribution businesses that will positively benefit the well being of the people around them.

In 2019, Kannaway® had a number of significant accomplishments, including:

Medical Marijuana, Inc.’s wholly-owned subsidiary HempMeds®, which operates in North America in the U.S. as well as in Latin America as HempMeds® Brasil and HempMeds® Mexico offer the portfolio’s predominate consumer brands Real Scientific Hemp Oil™ (RSHO™)  and Dixie Botanicals®.

In 2019, HempMeds® had a number of significant accomplishments, including:

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 pharmaceutical investment companies and partners including AXIM® Biotechnologies, Inc. and Kannalife, Inc. Medical Marijuana, Inc. was 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. The company’s flagship product Real Scientific Hemp Oil has been used in several successful clinical studies throughout Mexico and Brazil to understand its safety and efficacy.

Get more information, facts and figures about Kannaway, click here for the Kannaway overview.

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