Sativa Wellness Group plc (AQSE:SWEL) has announced the publication of it Financial Statements and Management, Discussion and Analysis report for year ended December 31, 2020. The key highlights of 2020 can be summarised as follows:
2020 Financial Results
The turnover for 2020 was £1,994K (C$3,478K) which was a 38% increase on the previous year (£1,449K) and the gross profit margin at 56% was a 4% increase on the 52% of the previous year. This, in the year of a pandemic, was a great success.
The net comprehensive deficit of £4,505K (2019: £3,797k) although still high, included a significant amount of transaction costs and consolidation costs that would otherwise not have been incurred given the reverse takeover of StillCanna Inc.
Quarter 1 and 2
The Company had only just launched its business plan for 2020 when the pandemic struck and everything came to a halt as the group had to close the Goodbody Wellness retail shops and many customers stopped trading so stopped buying our products. The Company responded by:
o Reducing staffing levels and cutting costs across the business;
o Utilising the UK production facility to produce hand sanitiser under the Goodbody brand and white label products for restaurants and businesses leading to record month to date in June followed by July, after some really lean months
The Company continued to drive forwards and launched the UK FSA Novel foods accreditation process in order to submit the product range for approval by March 31, 2021. This submission has since taken place.
Quarter 3 and 4
The Company brought together the various websites under one upgraded platform as the site goodbodystore.com and the new Vitamin D CBD range was launched
Most significantly the group completed the reverse takeover of StillCanna creating a vertically integrated European extraction to consumer cannabidiol company protecting the CBD supply chain and securing assets. The StillCanna acquisition added a CBD manufacturing facility in Poland, producing high quality CBD isolate and distillate, to the Company’s asset base as well as other significant assets and cash. There followed a successful period of integration across the group.
Following completion of the Reverse Takeover, the resulting issuer was renamed Sativa Wellness Group Inc. and the Company’s main trading market the CSE in Canada. The Company relisted on the AQSE in London as a secondary market as well as the Frankfurt and OTC exchanges.
Goodbody Botanicals Ltd, another group company, launched the Company’s wellness clinics under the name of Goodbody Wellness starting with COVID testing using the companies shops in Bath and then Bristol. This was a huge success with December then becoming the best month to date.
Phytovista Laboratories Ltd, the groups CBD testing laboratory was given provisional ISO 17025 accreditation, since completing the process and achieving full accreditation in April 2021
The most important aspect is that 2020 saw innovation to expand products and services in the wellness sector which will all contribute to growth in 2021. The clinics have grown to 30 as planned and the range of tests are increasing. The model is working well.
Novel food status should assist us to be seen as the supplier of choice in the CBD market for both raw oil and end products.
The ISO 17025 status of Phytovista laboratory and the combining of the UK and Polish laboratories will allow for the opportunity to expand both in the UK and into Europe.
The 2020 Financial Statements and Management Discussion and Analysis and further information regarding the Company can be found under the Company’s profile on www.sedar.com.