Business
Greenlane Reports Record Core Business Revenue in Q3 2020
Core Revenue Expands 36% to $32.3 million Compared to Q3 2019 Sales of Greenlane Brands Grew Approximately 65% to $5.6 million Compared to Q3 2019Implements
About this update from Greenlane Holdings, Inc.
[{"type":"text","content":"Core Revenue Expands 36% to $32.3 million Compared to Q3 2019 Sales of Greenlane Brands Grew Approximately 65% to $5.6 million Compared to Q3 2019Implements Further G&A Expense Reductions to Achieve Annualized Savings of Approximately $5.0 million Strong Balance Sheet Includes $40.0 million in Cash to Support Expansion Initiatives \n BOCA RATON, Fla., Nov. 16, 2020 (GLOBE NEWSWIRE) -- Greenlane Holdings, Inc. (“Greenlane” or \"the Company”) (Nasdaq: GNLN), one of the largest global sellers of premium cannabis accessories and specialty vaporization products, today reported financial results for the third quarter ended September 30, 2020. Third Quarter 2020 Highlights Net sales of the Company's Greenlane Brands grew approximately 65% to $5.6 million in Q3 2020 compared to $3.4 million in Q3 2019;Core revenue (defined as non-nicotine revenue) grew 36% to $32.3 million in Q3 2020, compared to $23.8 million in Q3 2019;Total revenue grew 10% to approximately $35.8 million in Q3 2020 compared to $32.4 million in Q2 2020;Excluding the impact of certain inventory adjustments which incurred in the quarter, gross profit would have been $7.3 million or 20.4% of net sales, a 610 basis point year over year improvement in gross profit percentage as compared to Q3 2019;Expanded management team through key hires to support Greenlane sales and marketing efforts in North America and Europe;Launched a first-of-its-kind line of responsibly sourced, precision-manufactured, pre-rolled cones made from organically-sourced paper exclusively processed in France and sealed with 100% natural Arabic gum;Obtained the exclusive right to expand the availability of Marley Naturals Accessories to specialty locations in Europe, Central and South America, and the Caribbean; Management Commentary “During the third quarter, with the help of our new senior leadership team, we acted on several key initiatives related to our go forward category emphasis, organizational structure, and related staffing levels. Building on the success we've achieved in growing Greenlane brands and non-nicotine sales year over year by 65% and 36%, respectively, we've taken additional decisive steps to de-emphasize certain product lines, invest in our fastest growing and highest margin opportunities, and further reduced our headcount by 4.5%,” said Aaron LoCascio, Greenlane’s Chairman and Ch...