Just like other industries, the CBD sector is facing economic headwinds that are cutting into revenue. Some main inhibitors? Higher pricing and supply chain disruptions that prompted downsizing and led to fewer sales.
However, two of the most prominent publicly traded CBD companies also are expressing optimism. Most of all, they said they expect change at the federal level that will give them access to more cannabis-buying consumers.
“On regulatory matters, we remain optimistic,” CV Sciences CEO Joseph Dowling said during a third-quarter earnings call, according to a transcript from Seeking Alpha. “There has been progress in the broader cannabis area. Given the recent election results, we believe passage of safe banking legislation, maybe even in the lame-duck session, is more possible than ever.”
Dowling added, “Every incremental executive action and legislative win further creates a reality that cannabis is constructively legal at the federal level. This helps everyone in our industry.”
But in the meantime, CBD sales have been sluggish at CV Sciences and other firms marketing hemp-based CBD products. While the same global factors affected total sales and profits for CV Sciences and Charlotte’s Web, their third-quarter outcomes varied.
Over at CV Sciences, the company that makes the PlusCBD products, sales fell 26.6% percent year-over-year to $3.8 million. Dowling said that came down “solely … to supply chain issues that caused out of…