GrowGeneration Corp. (OTCQX: GRWG), one of the biggest specialty hydroponic and organic gardening stores in the world that sells to both retail and commercial clients, reported it’s 3rd quarter financial results ending on September 2018.
With 18 retail locations currently, GrowGeneration announced a 109% increase in Q3 sales in comparison to the same period last year, raising $8.4 million in revenue from last year’s $4.0 million.
Among other things, financial highlights include year-to-date revenues of $20 million, a 86% increase in comparison to 2017’s revenues of $10.7 million. Additionally, the company’s total assets amount to $36.2 million, a drastic improvement from last year, in which GrowGeneration only had $9.2 million in assets.
The company also had $14.3 million in cash and cash equivalents, along with a working capital of $23.1 million as opposed to the $5.6 million available as of December 31, 2017.
“This was another great quarter of growth for GrowGeneration, with revenues growing over 100% quarter over quarter. Our management teams focus on probability was clearly demonstrated with our operating costs being reduced by 16% in the quarter,” said Co-Founder and CEO Darren Lampert. “Our balance sheet, with assets totaling $36.0 million, $14.0 million in cash, well-positions the Company to continue to execute its acquisition plan and begin the process to up-list the company to a larger exchange.”
The co-founder would go on to say that GrowGenerations earlier acquisition of HeavyGardens.com was a boon to their overall e-commerce strategy. Alongside the formation of subsidiary companies such as GrowGen Canada and GrowGen Hemp Corp, the overall direction of the company has been to establish itself as the leading supplier for cannabis growers internationally. “We are forecasting a revenue run rate of approximately $42 million coming out of 2018 and $10 million for Q4 2018,” he added.
While sales in most areas have increased, the most notable exception to this according to the statement was the Colorado market, declining approximately 1% in comparison to last year. However, this has been attributed to store consolidations along with GrowGeneration focusing on more profitable stores in larger areas.
California remains one of the companies best markets, growing 2.6 million as a result of the four new stores added through local acquisitions. With an ever increasing number of retail growers and businesses needing hydroponic equipment, GrowGeneration’s business future remains quite optimistic.
GrowGeneration Corp Company Profile
GrowGen USA owns and operates specialty retail hydroponic and organic gardening stores. Currently, GrowGen USA has 18 stores, which includes 5 locations in Colorado, 6 locations in California, 1 location in Las Vegas, 1 location in Washington, 3 locations in Michigan, 1 location in Rhode Island and 1 location in Oklahoma.
GrowGen USA also operates an online superstore for cultivators, located at HeavyGardens.com. GrowGen USA carries and sells thousands of products, including organic nutrients and soils, advanced lighting technology and state of the art hydroponic equipment to be used indoors and outdoors by commercial and home growers.
Our mission is to own and operate GrowGeneration branded stores in all the major legalized cannabis states in the U.S. and Canada. Management estimates that roughly 1,000 hydroponic stores are in operation in the U.S. By 2020 the market is estimated to reach over $23 billion with a compound annual growth rate of 32%. –GrowGeneration