Business
Alternate Health Reports $3.1 Million in Q3 2019 Revenue
Alternate Health Reports $3.1 Million in Q3 2019 Revenue.
About this update from Alternate Health Corp
[{"type":"text","content":"November 14, 2019 – Alternate Health Corp., (\"Alternate Health\" or the \"Company\") (CSE:AHG) (OTCQB:AHGIF), an international leader in CBD product development and distribution, announced today that the Company generated $3.1 million in revenue in the third quarter of 2019.“Alternate Health’s third quarter results demonstrate the Company’s commitment to increasing revenues, expanding margins and developing new business opportunities,” says Howard Mann, CEO of Alternate Health. “We have developed a strong foundation for achieving both sustained growth and profitability in the CBD industry.”Financial HighlightsAlternate Health reported revenue of $3.1 million, up 61% from Q2.The Company’s gross margins increased to 72.2% from 68.2% in Q2Alternate Health moved towards profitability with a loss per share of only $0.004.The Company reported a year-over-year increase in third quarter revenue, from $520,000 in 2018 to $3.2 million in 2019. The large increase is mainly due to Alternate Health’s acquisition of Blaine Labs Inc. (“Blaine Labs”), a licensed pharmaceutical manufacturer of FDA-registered products with over 50 SKUs available from major retailers across the United States.Alternate Health has also significantly lowered operating expenses from $4.9 million in Q3 2018 to $2.3 million in Q3 2019. The Company has taken action to eliminate redundancies following the acquisition of Blaine Labs with the aim of greater investment into product manufacturing and distribution. With the transition largely complete, Alternate Health is focusing on launching new product lines while maximizing Blaine Labs’ existing portfolio of assets.Revenue DriversIn the Q3 2019, the Company took major steps forward in its CBD strategy. After completing the acquisition of Blaine Labs in Q2 2019, Alternate Health has focused on building on the Company’s FDA experience and credibility to launch wholesale CBD sales and develop white label relationships with established brands.With this goal in mind, Alternate Health launched Alternate CBD in September 2019. The new business unit specializes in wholesale CBD extraction, packaging and distribution from the Company’s licensed, cGMP-certified facilities. Subsequently, in Q4 the company announced an agreement to acquire Mr. Custom White Label, a cGMP private label manufacturer of over 200 CBD products.“Alternate H...