- Q3 2020 revenue numbers paint a bright future for KAVL with revenue up by approximately 44%
- Company closely focused on expanding distribution into large national retailers, convenience chains during Q4
- Much of Q3 activity centered around Bidi(TM) Sticks
Kaival Brands Innovations Group (OTCQB: KAVL), a company focused on growing and incubating innovative and profitable products into mature, dominant brands, recently released its Q3 financial report. The report showed revenues for KAVL up by approximately 44% compared to Q2 2020. In addition, the report noted that national distribution channels are being established for future growth.
“We had an extremely busy and fruitful third fiscal quarter,” said Kaival Brands president and CEO Niraj Patel. “We experienced a rising demand for our exclusively distributed premium product, the Bidi(TM) Stick. Our sales growth is occurring mostly organically through smaller distribution channels and wholesalers. . . . Now in the fourth fiscal quarter, we are more closely focused on expanding our distribution into large national retailers and convenience chains.”
According to the revenue report, revenues for Q3 were approximately $32.4 million, bringing the total revenues for the year thus far to nearly $54.9 million. Other numbers worth noting include gross profits for Q3 nearing $4.4 million, total cost of revenue – related party was approximately $28 million for the third quarter of fiscal 2020, and total operating expenses during the quarter reaching approximately $1.5 million. Net income for Q3 2020 was an estimated $2.6 million, and the company reported a cash balance of roughly $2.7 million as of July 31, 2020.
Much of the company’s activity centered around Bidi Sticks; Kaival Brands is the exclusive global distributor of the completely self-contained, disposable and recyclable product, designed to revolutionize the vaping experience.
“We are proud to announce that Bidi Sticks can now be found nationally in over 850 retail stores, like Fas Mart and SprintMart, in addition to over 2,200 current Circle K convenience stores,” Patel said. “And we expect in the coming months for our distribution to expand into thousands more retailers and convenience chains.”
Patel also noted that the innovative product is now available on the entire island of Guam, as an initial order valued at approximately $166,000 had been shipped to Ambros Inc. This Guam-based company is the exclusive distributor of SC Johnson and Budweiser products to all retailers located in that country. “The Bidi(TM) Stick will be the only vaping device offered by Ambros Inc. to their customers and retailers,” Patel said.
Made from high-quality components and equipped with a long-lasting battery and class C nicotine, the Bidi Stick is a self-contained, disposable product that is tamperproof and recyclable. Available in 11 flavors, the Bidi(TM) Stick includes sensitivity control system technology, offering a premium vaping experience for adult consumers only.
Kaival Brands is focused on growing and incubating innovative and profitable products into mature and dominant brands in their respective markets. Kaival’s vision is to develop internally, acquire, own or exclusively distribute these innovative products and grow each into dominant market-share brands with superior quality and recognizable innovation.
For more information, visit the company’s website at www.KaivalBrands.com.
NOTE TO INVESTORS: The latest news and updates relating to KAVL are available in the company’s newsroom
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