Kaival Brands Increases Revenues Nearly 44%, Expands Distribution Channels

2020 revenues to date approaching $55 million

GRANT, Fla., Sept. 15, 2020 (GLOBE NEWSWIRE) -- via NetworkWire - Kaival Brands Innovations Group, Inc. (OTCQB: KAVL) (“Kaival Brands,” the “Company” or “we”), a company focused on growing and incubating innovative and profitable products into mature, dominant brands, announces an increasing demand for the Bidi Stick is driving sales to new heights. Financial results for the Company’s 2020 third quarter, ended July 31, show revenues increased approximately 44% compared to the second quarter of 2020, with total revenues for the first nine months of the year reaching nearly $54.9 million.

“We had an extremely busy and fruitful third fiscal quarter. We experienced a rising demand for our exclusively distributed premium product, the Bidi Stick. Our sales growth is occurring mostly organically through smaller distribution channels and wholesalers,” said Niraj Patel, president and CEO of Kaival Brands. “Now in the fourth fiscal quarter, we are more closely focused on expanding our distribution into large national retailers and convenience chains.”

Fiscal 2020 Third Quarter Highlights*:

• Revenues for the third quarter of fiscal 2020 were approximately $32.4 million, compared to $0 in the same period of the prior fiscal year.
• Gross profit* for the third quarter of fiscal 2020 was approximately $4.4 million, compared to $0 for the third quarter of fiscal 2019.
• Total cost of revenue – related party was approximately $28 million for the third quarter of fiscal 2020, compared to $0 in the same period of the prior fiscal year.
• Total operating expenses were approximately $1.5 million in the third quarter of fiscal 2020, compared to approximately $27,000 in the same period of the prior fiscal year.
• Net income was approximately $2.6 million, or $0.00 basic and diluted earnings per share, in the third quarter of fiscal 2020, compared to net loss of approximately $27,000, or $0.00 basic and diluted loss per share, for the prior year period.
• Cash balance at July 31, 2020, was approximately $2.7 million, compared to $0 at Oct. 31, 2019.
• National distribution channels are being established for future growth and the Company’s products are currently in thousands of retail and convenience store locations.
• Revenues for the first nine months of fiscal year 2020 were approximately $54.9 million, compared to $0 in the same period of the prior fiscal year.

Bidi Sticks can now be found nationally in over 850 retail stores, such as Fas Mart and SprintMart, and in over 2,200 current Circle K convenience stores, with distribution expected to expand into thousands of additional retailers and convenience chains, Patel said.