Reiterate Fiscal 2020 Revenue Guidance
“In June, we initiated fiscal 2020 revenue guidance that was based on the success of our national expansion, channel expansion and product expansion strategy. Today, I am pleased to reiterate that revenue guidance of $46 million to $50 million for fiscal year 2020, with estimated gross margin of approximately $18 million to $20 million. We anticipate the new flavor infused water to contribute approximately $3 million to $4 million in revenue for our fiscal year 2020.
“Our forecasted revenue is based on our expectation that revenue growth will remain consistent for fiscal year 2020, significant sales growth will continue in Southern California, and significant orders will be received from the national-retailers and east coast grocery chains, which have only recently started selling our products. In addition, we assume that we will continue to be able to add co-packing plants and production capacity to satisfy customer demand.
“As our sale cycle is an average of 14 days, a slowdown of the growth in any of the areas set forth above during fiscal 2020 or other events could cause actual results to vary materially from this forecast. In addition, sales growth, which may have a significant impact on quarterly and annual revenue, is difficult to predict.
“I want to emphasize that we expect to achieve this from our core and new flavor product lines. We have not included any sales of our CBD infused product in this guidance,” added Mr. Wright.