Business
GrowGeneration Reports Second Quarter 2023 Financial Results
Net Revenue of $63.9 million Represents a 12% Sequential Improvement from Prior Quarter Net Loss of $5.7 million and Non-GAAP Adjusted EBITDA(1) Profit of
About this update from Growgeneration Corp.
[{"type":"text","content":"\nNet Revenue of $63.9 million Represents a 12% Sequential Improvement from Prior Quarter\n\n\nNet Loss of $5.7 million and Non-GAAP Adjusted EBITDA(1) Profit of $0.9 million, Driven by Sequentially Stronger Sales\n\n\n DENVER--(BUSINESS WIRE)--\nGrowGeneration Corp. (NASDAQ: GRWG) (“GrowGen” or the “Company”), the largest chain of specialty hydroponic and organic garden centers in the United States with 62 stores across 18 states, today reported financial results for the second quarter ended June 30, 2023.\n\n\nSecond Quarter 2023 Highlights\n\n\n\nNet sales increased 12% quarter-over-quarter to $63.9 million\n\n\n\nComparable store sales decreased 15.1% to the prior year\n\n\n\nGross profit margin of 26.8%, decrease of 1.7% to the prior year\n\n\n\nNet loss of $5.7 million and Adjusted EBITDA(1) gain of $0.9 million\n\n\n\nYear-to-date cash flow provided by operations of $7.4 million\n\n\n\nCash, cash equivalents, and marketable securities of $70.6 million\n\n\n\nChanging full-year 2023 guidance for revenue to be $220 million to $225 million and Adjusted EBITDA(1) to be a loss of $4 million to $6 million\n\n\n\nDarren Lampert, GrowGeneration’s Co-Founder and Chief Executive Officer, stated, “I am pleased with our performance and results in the quarter. GrowGen is proud to share that we generated net revenue of $63.9 million, which is a 12% improvement to the first quarter. Further, the company is reporting positive Adjusted EBITDA(1) of $0.9 million, consistent with the expectations that we previously communicated. The improvements in revenue and Adjusted EBITDA are a testament to our team’s work over the previous few quarters in right-sizing the business and focusing on profitable growth. Additionally, I am excited to announce that we have officially rolled-out our new ERP system during the third quarter. This represents a tremendous milestone for GrowGen, benefiting our forward looking cost structure and improving customer experience as we continue to optimize the system over the coming several quarters. We completed three M&A transactions at desirable valuations in the second quarter and will continue to execute upon the right opportunities to sustainably grow our business.”\n\n\nLampert continued, “While I am encouraged by our results in the first-half of the year, it is no secret that the cannabis market landscape remains...