Sativa Group made substantial progress with revenue and gross profits growing strongly

Sativa Group (LON:SATI) has today announced its interim results to 30^th June 2019.

Henry Lees-Buckley, who was appointed CEO in August 2019, said: “Sativa Group made substantial progress during the first half of the year with revenue and gross profits growing strongly. 

“The Goodbody CBD Wellness business completed its three-store pilot phase and is poised to roll-out its franchise model.  With the George Botanicals brand and PhytoVista laboratories also performing well, prospects look good.” 

Key points:

•           Revenue increased by 133% on H2 2018 to £588,000 (2018: H1: £8,000, H2: £252,000)¹.

•           5% increase in gross margin on H2 2018 to 46% (2018 H1: 87%, H2: 41%)¹.

•           Gross profit of £273,000, a 164% increase on H2 2018 (2018: H1: £7,000, H2: £103,000)¹.   

•           Cash at bank and cash equivalents of £2.23 million (31 December 2018: £3.74 million).

•           Two offtake agreements were signed with suppliers for CBD oil in Portugal and also Switzerland.

•           The Company’s direct selling platform was launched in May 2019, with 430 sales advocates recruited by the period-end, generating strong revenue growth.

•           The first Goodbody Wellness centre was opened in Bath at the end of June, alongside a training centre for customer facing staff at the Company’s HQ. Post period-end, further stores opened in Cirencester and Clifton, Bristol, completing the planned three-store pilot phase. 

¹ P&L variance comparison to H2 2018, as the results to June 2018 represent 9 days of trading performance from George Botanicals, post-acquisition on 22 June 2018.