- VPR Brands’ quarterly revenues are up by 31 percent
- The company maintains healthy gross operating margins in excess of 40 percent
- The e-cigarette/vapor market is estimated to hit $9 billion in 2019
Recent financial results released by VPR Brands LP (OTC: VPRB) show that the multi-brand developer and marketer of nicotine and cannabis products has what it takes to scale up successfully. Revenues for the first quarter of 2019 are up, year-over-year, approximately 31 percent, continuing the trend from the year before, when the top line for 2018 climbed to $4,613,300 and marked a 28 percent increase over 2017 revenues of $3,610,379. If the innovative provider of smokeless cannabis and nicotine products maintains its current gross operating margins in excess of 40 percent, break-even doesn’t seem very far away.
VPR’s product portfolio positions the company to capitalize on lofty projections for the e-cigarette/vapor market, as well as the fledgling cannabis industry. Notably, the cannabis sector is still far from maturity. In 2016, the last year for which data is available, just 16 percent of the population aged 15-64 reported using cannabis at least once in the past year. As the wave of liberalization and legalization progresses, that percentage is expected to rise. In addition, driven by an increasing awareness of the negative effects of smoking, consumers are switching to smokeless products. As a result, the e-cigarette market is expected to reach $6.4 billion in 2019.
The company’s flagship brand – HoneyStick – targets both the nicotine and cannabis markets. The company is betting heavily on the lifestyle brand to drive growth in both verticals. The HoneyStick platform was developed with the vaping enthusiast in mind and has evolved through in-house product development to suit the needs of both cannabis and nicotine consumers. The line, consisting of vaporizers, vape tanks and accessories, is a High Times award-winner. Krave, Helium, VaporX and Vaporin are ancillary brands that cater to the nicotine vertical, while the company has entered the CBD vertical through its Goldline CBD product line.
The Goldline range is presently available in 15 SKUs that include CBD gummies, CBD pens, CBD oil and CBD extracts. The high potency Goldline gummies provide quick activation and strong onset of CBD. Each gummy uses a high-quality CBD glaze so that activation begins immediately on contact with the tongue. The Goldline CBD vape pens are pre-loaded, ready to vape devices. They’re also disposable. When the tank runs dry, you can simply toss the pen and buy another one. The pens contain 100mg of pre-loaded pharmaceutical grade CBD that comes in four flavors.
Goldline CBD crumble is a full spectrum extract that is rich in CBD. Its 250mg power-packed filling delivers CBD immediately, with unmatched potency. Extracted from the highest grade of CBD flower, the product comes in a solid format, which allows it to be placed and vaped on an open coil vaporizer. The Goldline range also includes CBD oils and tinctures that come in 30ml bottles.
A strong management team holds the reins at VPR Brands LP. The company’s chief executive officer is Kevin Frija, a veteran entrepreneur with three decades of experience in advertising, brand licensing, marketing and supply chain management. In 2009, Frija became the president and chief executive officer of Vapor Corp., a publicly traded electronic cigarette company and e-cigarette importer, which, in 2014, uplisted to the Nasdaq Capital Market. In 2016, Vapor Corp. sold its brands and wholesale business assets to Frija. They are presently owned by VPR Brands LP.
Dan Hoff is the chief operating officer of VPR Brands LP. He previously worked at Vapor Corp. under Kevin Frija, overseeing finance and accounting, supply chain management, product design and development and key vendor relations. Hoff also helped build and expand Vapor Corp.’s cannabis-based products division and expand its wholesale division. More recently, he worked to develop and expand Vapor Corp.’s medical cannabis vape program, which provides turnkey OEM vapor solutions for cannabis farmers, cultivators and extractors.
For more information, visit the company’s website at www.VPRBrands.com
NOTE TO INVESTORS: The latest news and updates relating to VPRB are available in the company’s newsroom at http://ibn.fm/VPRB
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