Naturally Splendid (TSXV:NSP) announce accumulated gross sales to date in 2016 of approximately $7,100,000 CDN.
Naturally Splendid has recorded approximately $4,300,000 CDN in gross sales during the second quarter (Q2) of 2016, which spans the period from April 1, 2016 to June 30, 2016. The Company previously reported gross sales of $1,420,000 CDN in the first quarter (Q1) of 2016, which spanned the period from January 1, 2016 to March 31, 2016. Accumulative gross sales for Q1 and Q2 are approximately $5,600,000 CDN.
Additionally, Naturally Splendid announced a Purchase Order of $1,450,000 CDN on June 20, 2016 to be filled in the third quarter (Q3) of 2016. The sum of Q1 and Q2 sales, plus the June 20th Purchase Order, gives Naturally Splendid approximately $7,100,000 CDN in gross sales to date in 2016.
In comparison, the Company recorded audited gross annual sales of $235,000 CDN in 2014 and audited gross sales of $301,705 CDN in 2015. Currently the Company has exceeded 2015 gross sales by over 2,350%.
Naturally Splendid is experiencing growth in gross sales in many of its divisions. The most significant growth has been in the export division where South Korean exports have exceeded initial projections by over 400% to date. However, the overall increase in gross sales can be attributed to several factors including Naturally Splendid’s retail lines NATERA®, Chii™ and Pawsitive FX™ which are showing consistent growth in sales. As reported earlier, the Company is pleased to confirm that in Q1 2016 their majority owned subsidiary, POS / BPC Manufacturing Corp. (“POS / BPC”), completed the preparation/training work to begin normal manufacturing status at this facility and has begun manufacturing for multiple clients. The POS / BPC facility will add additional revenue to Naturally Splendid in 2016. The 12,000-square-foot POS / BPC Facility — which is managed for POS / BPC by POS Bio-Sciences — is positioned to offer commercial-scale custom processing solutions for biological materials, such as functional foods and natural health ingredients to a wide range of clients. POS / BPC came on line March 28, 2016 having spent Q1 completing significant upgrades to the facility. In Q2, the first quarter that POS / BPC has been operational, the facility grossed in excess of $ 390,000 and is expected to be cash flow positive in 2016. Management expects gross revenue for POS / BPC to increase in Q3 and Q4.
Naturally Splendid CEO, Craig Goodwin, stated:
We are off to a good start for Q3. Having already secured a Purchase Order for $1,450,000 for Q3, Naturally Splendid is on pace to equal the sales performance of Q2. Our goal is to exceed our Q2 sales figures through increased export activity, increased retail sales, as well as securing additional clients and optimizing operations at POS / BPC.
We are definitely pleased with the increase in our gross sales throughout our divisions. More importantly, we believe the Company is reaching the stage of being cash flow positive on a consistent basis. This is due in fact to not only the increased gross sales, but also increasing margins as scales of economy begin to show a positive effect on our bottom line. As the Company approaches being cash flow positive, we can begin to focus more attention and resources towards the lucrative omega markets globally with HempOmega® and also begin to focus attention on the positively evolving cannabinoid opportunities in the United States, specifically focusing on the Cannabidiol (CBD) markets.
Our success exporting to South Korea is just the beginning. The South Korean opportunity secures Naturally Splendid a foothold in the growing Asian health and wellness market and we are experiencing increased interest for our products in Asia since attending tradeshows as official Members of the Canadian Trade Delegation in Singapore and Seoul and more recently as official Members of the Premier’s Trade Mission to Seoul, Manila and Tokyo, which was lead by British Columbia’s Premier Christy Clark. The success that we have had in South Korea creates the opportunity to increase our exporting sales by expanding to additional countries not only in Asia but globally, as well as adding additional product offerings such as hemp protein, hemp oil and HempOmega®. However, we are not limited to just hemp products. We are pursuing numerous opportunities to introduce additional food products outside of hemp into our exporting offerings, utilizing in part the same successful product launch strategy executed with our shelled hemp seed hearts in South Korea.