Business
GrowGeneration Reports Second Quarter 2024 Financial Results
Net Revenue of $53.5 million, up 11.8% quarter-over-quarter Gross Profit Margin of 26.9%, a 110 basis point sequential improvement Operating Expenses reduced
About this update from Growgeneration Corp.
[{"type":"text","content":"\nNet Revenue of $53.5 million, up 11.8% quarter-over-quarter\n\n\nGross Profit Margin of 26.9%, a 110 basis point sequential improvement\n\n\nOperating Expenses reduced by $2.5 million year-over-year\n\n\nNet Loss of $5.9 million and Non-GAAP Adjusted EBITDA(1) Loss of $1.1 million\n\n\n DENVER--(BUSINESS WIRE)--\nGrowGeneration Corp. (NASDAQ: GRWG) (“GrowGen” or the “Company”), one of the largest retailers and distributors of specialty hydroponic and organic gardening products in the United States, today announced financial results for the second quarter ended June, 30, 2024.\n\n\nSecond Quarter 2024 Summary\n\n\n\nNet sales increased 11.8% quarter-over-quarter to $53.5 million;\n\n\n\nProprietary brand sales as a percentage of Cultivation and Gardening net sales increased to 21.5% as compared to 16.7% in the same prior year period;\n\n\n\nGross profit margin of 26.9%, a 110 basis point sequential improvement and an increase from 26.8% in the comparable 2023 period;\n\n\n\nOperating expenses decreased $2.5 million from the second quarter of 2023 to $20.9 million in the second quarter of 2024;\n\n\n\nNet loss of $5.9 million, a sequential improvement of $2.9 million;\n\n\n\nAdjusted EBITDA(1) loss of $1.1 million, a sequential improvement of $1.7 million; and\n\n\n\nCash, cash equivalents, and marketable securities of $56.0 million and no debt.\n\n\n\nDarren Lampert, GrowGen’s Co-Founder and Chief Executive Officer, stated, “We are very pleased to report solid second quarter results that reflect significant progress in several key areas of our business. Second quarter net revenue increased 11.8% sequentially and gross margin reached 26.9%, a 110 basis point improvement over last quarter. Importantly, proprietary brand sales rose to 21.5% of Cultivation and Gardening net sales, a 480 basis point improvement to the same period last year. These results highlight the success of our strategic initiatives to drive proprietary brand sales as well as our ongoing focus on streamlining our business.”\n\n\n“Recently, we provided details on a comprehensive restructuring plan designed to fundamentally reposition GrowGen as we focus on our proprietary brands, a digital sales transformation centered on commercial customers, and streamlining operations to align with current industry-wide conditions. By executing this plan, we expect to generat...