- ETST product sales rose to $770,635 for fiscal 2019, up from $463,108 in the previous year
- The company cited expanded distribution, increased customer awareness and rising demand for branded, high-grade, full-spectrum cannabinoid products as reasons for the improvement
- ETST’s cost of revenue rose as sales grew, but the company maintained a gross margin of 38.2 percent for the fiscal year
Earth Science Tech Inc. (OTCQB: ETST), a biotech company focused on the nutraceutical and pharmaceutical fields, reported a 66.4 percent rise in revenues to $770,635 for the 12 months ended March 31, as compared to $463,108 for the same period in 2018 (http://ibn.fm/jmGx4).
In an annual report, filed with the SEC in July 2019, the company cited expanded distribution, increased customer awareness and rising demand for its branded, high-grade, full-spectrum cannabinoid products as factors driving the impressive performance. By cutting expenses from rising costs as product sales rose, ETST was able to maintain a 38.2 percent gross margin, the report noted, in addition to seeing a 52.9 percent jump in gross profit – from $192,886 in FY2018 to $295,013 in FY2019.
Details of the report show a 179 percent decline in bad debt expense, marking a savings of $56,131 as compared to $31,211 from the prior year. ETST also reported sharply higher sales and an efficient 37 percent cut in marketing expenses to $242,719 in FY2019 from $332,986 in FY2018.
ETST markets a line of full-spectrum cannabinoids available for shipping to all 50 U.S. states. Sales are made online from the company’s website, as well as through its storefront and clinic accounts. ETST products contain only natural ingredients, use CBD oil extracted through a CO2 formulation and include flavors ranging from peppermint to orange blossom.
Arcview Market Research projects that legal cannabis sales in North America will reach $20.2 billion by 2021, growing at a compound annual growth rate (CAGR) of 25 percent from 2016, as reported by BioSpace (http://ibn.fm/PdZUI).
For more information, visit the company’s website at www.EarthScienceTech.com
NOTE TO INVESTORS: The latest news and updates relating to ETST are available in the company’s newsroom at http://ibn.fm/ETST