Veritas Farms (OTCMKTS: VFRM) is a stock that I’ve followed for some time now, and it has been pretty enjoyable to watch the evolution of the company. Over the course of just over a year, the company has far more than doubled its retail footprint, introduced several new products, and become a driving force in the CBD space. So, I figured that now would be a good time to give you guys an update on how the company is doing. Here’s what’s going on:
What Is Veritas Farms?
For those of you who didn’t read my in-depth article on VFRM, here’s a quick run down:
Veritas Farms is a full-spectrum CBD company. This means that its products don’t just include the isolated CBD molecule derived from the hemp plant. Instead, they include more than 100 cannabinoids found in the plant. This is important as the full-spectrum nature of these products greatly enhances their effectiveness when it comes to a wide range of health benefits associated with CBD.
Moreover, the company is known as a seed-to-sale company. It owns a 140-acre hemp farm where it grows hemp, extracts cannabinoids and manufactures its full-spectrum products. So, what’s the big deal?
Well, most companies in the CBD space are dependent on growers, extractors, manufacturers and more. In fact, VFRM manufactures private label products for some of these companies. Unfortunately for them, if there is a bump in the road for one of their suppliers, they are looking at delays.
Due to the seed-to-sale nature of the Veritas Farms business model, it is not exposed to the risks associated with including third parties in the process.
There Have Been Several Key Developments Lately
Over the past several months, we’ve seen quite a bit of positive news out of Veritas Farms. Most recently, the company announced an update with regard to financial results. Here’s what we saw:
- Total Revenues: Revenues climbed by 250% in the year 2019, coming in at $7,291,908. In 2018, total revenue came in at $2,079,981. From a quarterly standpoint, we saw impressive growth in Q4 as well. Revenues were up 96%, coming in at $1,579,823, compared to $808,177 generated in Q4 of 2018.
- Gross Profit: Gross profit climbed 295% in 2019 to $3,460,714 compared to $876,314 in 2018.
- Total Assets: Total assets climbed 103%, coming in at $14,218,557 as of December 31, 2019 compared to $7,014,086 as of December 31, 2018.
- Total Inventory: VFRM also saw a tremendous increase in inventory. In fact, inventories were up 163%, coming in at $6,600,455 as of December 31, 2019. As of December 31, 2018, inventories came in at $2,508,954.
As you can see, 2019 was an incredible year for the company, with sales, inventory, assets, and more key figures growing in multiples.
VFRM Joins The Fight Against COVID-19
Another recent announcement from the company that really got my attention was an announcement that Veritas Farms was getting in the hand sanitizer business. As the COVID-19 pandemic continues to spread, consumers are looking for the latest and greatest ways to stay safe.
However, the best way to do so has been around for some time now, cleanliness. An easy way to keep your hands clean is hand sanitizer. However, due to the incredibly hard demand, it’s difficult to find in various demographics across the United States.
In the release, the company said that its hand sanitizer contains 70% isopropyl alcohol, also vera and vitamin E. It was developed in partnership with and is produced by The Miami Distilling Company, a subsidiary of Toast Distillers, Inc. The hand sanitizer is currently for sale nationwide on the company’s website here.
Retail Footprint Expansion
Going back for quite some time now, if you read my articles on VFRM, you’ll see that one of my strongest arguments for the company has been their retail strategy. The company has been heavily focused on the big-box store space, and has been incredibly successful in breaking into them.
In fact, in a recent update from the company surrounding its retail efforts, the company said that it now has a retail footprint of over 7,500 stores across the country. In the release, VFRM said that one of its large national retail partners is expanding its retail distribution of the company’s products by 1,200 new stores across multiple states. Moreover, this partner is adding ingestible products to their hemp product program.
As a result, the expansion doubles the amount of the company’s products available within these stores. Moreover, with the higher SKU count in both existing and new locations, we can expect to see strong sales growth through this partner.
Moreover, the company said that a grocery chain within its retail partner downline is now launching a test hemp product program. This particular program will focus on Veritas Farms topical products and the company’s new Veritas Beauty product line.
In a statement, Alexander Salgado, CEO and co-founder at VFRM, pointed to more growth across its retail channel:
“We recently stated we would aggressively pursue expansion opportunities with current retailers. The success our team has achieved to that end, in such a short time, is a promising development for the future of our chain retail growth initiatives.”
The Bottom Line
The bottom line here is simple. I’m just as excited about Veritas Farms now as I have been in the past, if not moreso. The company’s continued work to expand its retail footprint is paying off in a big way. This combined with the complete control the company has on the entire process from seed to sale makes VFRM stock one that’s hard to ignore.
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