Earth Science Tech Inc. (ETST) Reports 36% Revenue Gain, 90% Jump in Gross Profit for Quarter Ended June 30
- ETST reported $227,635 in revenue for the quarter ended June 30, 2019, marking a greater than 36 percent hike when compared to $166,891 for the same period in 2018
- The company’s gross profits spiked by more than 90 percent for the three-month period to $113,126, up from $59,409 for the same period in 2018
- ETST grew its revenue while cutting key operating expenses related to R&D, legal and marketing
Earth Science Tech Inc. (OTCQB: ETST), a diverse biotech company focused on the nutraceutical and pharmaceutical fields, reported sharply higher revenue and gross profit for the three months ended June 30, 2019. Notably, the company recorded a higher than 90 percent gain in gross profit for the 2019 period, alongside increased revenue totals and decreased operating expenses (http://nnw.fm/Ev1WQ).
For the quarter, ETST reported sales of $227,635 – a total that is 36.4 percent higher than the $166,891 in revenues for the comparable period in 2018. Additionally, gross profit jumped to $113,126 in the 2019 quarter, from $59,409 for the same quarter in 2018. To achieve that higher gross profit figure, ETST placed emphasis on cutting key operating expenses, including marketing, legal and R&D.
The ETST report detailed those cuts, including dropping R&D expenses to $22,113 as compared to $65,245 for the same period in 2018. The decrease in 2019 is primarily associated with the company moving its Hygee(TM) medical device out of R&D phase and discontinuing CBD patent applications, per a corporate update. Hygee is a revolutionary home kit designed for the detection of sexually transmitted infections, such as chlamydia, in women. The company sees Hygee as empowering women across the globe while setting a new standard in women’s health. The product has already generated excitement among investors. In other efforts to improve its bottom line, ETST has also been taking a hard look at its marketing expenses. By eliminating magazine marketing, the company was able to decrease these costs to $20,623 in the three-month period, down from $29,267 in the comparable period of 2018.
Those revenue and gross profit gains for the quarter came after ETST earlier reported that product sales were $770,635 for its fiscal year ended March 31, 2019, marking a 66.4 percent increase compared to the $463,108 recorded for the same period in 2018. The company was able to maintain a gross profit total of $295,013 and a gross margin of 38.2 percent in 2019, with full-spectrum cannabinoids driving sales. The company also reported that its core customer base grew as a result of the positive response to its V4 product line (http://nnw.fm/Yn5Ok).
ETST continues to synergize a passion for health and wellness with its premium products. In a July 2019 SEC filing, ETST management explained that its market advantage strategy is “to design and produce CBD-enhanced nutraceutical products for sale to the general public. (The company) intends to create high-grade, CBD-rich hemp oil and other CBD-containing products unique to the current market in the nutraceuticals industry. (It) believes that (its) formulations will set (ETST) apart from competing products for promoting health.”
The company markets a complete line of high-grade hemp-CBD oils, hemp-CBD caps and CBD pet oil products, with its full-spectrum and pure CBD oils utilizing a super-critical CO2, cold-liquid extraction method.
For more information, visit the company’s website at www.EarthScienceTech.com
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