Grown Rogue Reports 255%YoY Increase In Q1 Revenue, Ninth Consecutive Of Positive Adjusted EBITDA

Grown Rogue International Inc. GRIN GRUSF has reported its fiscal first-quarter 2022 results for the three months ended January 31, 2022.

“Grown Rogue had a very strong quarter considering Q1 is typically the weakest quarter of our fiscal year”, Obie Strickler, the company’s CEO, said. “With our recent launch of pre-rolls in Michigan and continued build-out of our 80,000 square foot facility, we expect further market share gains in 2022.”

Q1 2022 Financial & Operational Highlights

• Total revenue amounted to $3.73 million, compared to $1.05 million in the prior year’s quarter, representing a year-over-year increase of 255%.
• Gross profit, excluding fair value items, totaled 2.03 million, versus $496,478 in the first quarter of 2021, an increase of 310% year-over-year.
• Total expenses increased to $1.83 million from $1.05 in the corresponding quarter of last year.
• Net income totaled $155,441 compared to a net loss of $915,065 in the same quarter of last year.
• Adjusted EBITDA came in positive at roughly $1 million, representing the ninth consecutive quarter of positive adjusted EBITDA.
• Net assets (excluding intangibles and goodwill) of $8.23 million compared to $1.5 million in net liabilities in the first quarter of 2021.
• A third consecutive quarter of positive operating cash flow before changes in working capital.
• #1 indoor flower wholesaler in Oregon, according to LeafLink’s MarketSpace data.
• Closed a non-brokered private placement for gross proceeds of $1.30 million, which included an investment from Bengal Capital, a venture capital firm with significant cannabis expertise, and the company’s CEO.
• Subsequent to quarter-end, Grown Rogue launched nitrogen-sealed pre-rolls in Michigan.
• Named fastest-growing brand in Oregon during January, according to LeafLink; the third time in five months.

Oregon Operations

• Revenue of $1.39 million compared to $0.87 million in the first quarter of 2021, an increase of 59%.
• Gross profit, before fair value adjustments, of $0.70 million compared to $0.49 million in the first quaqrter of 2021, an increase of 41%.
• Gross margin, before fair value adjustments, of 50.4%.
• Segmented adjusted EBITDA of $0.41 million and adjusted EBITDA margin of 29.4% compared to segmented adjusted EBITDA of $0.05 million and adjusted EBITDA margin of 4.8% in the first quarter of 2021.
• Average selling price of indoor whole flower of $781/pound.
• Indoor production run rate expected to increase to 1,000 pounds in Q2 2022.
• #1 indoor flower wholesaler in Oregon, according to LeafLink’s MarketSpace data.
• Named fastest growing brand in Oregon during January, according to LeafLink, and the third time in five months.

Michigan Operations

• Revenue of $2.34 million compared to pro-forma2 revenue of $1.13 million in the first quarter of 2021, an increase of 108%
• Gross margin, before fair value adjustments, of 57.0%.
• Segmented adjusted EBITDA of $1.02 million and adjusted EBITDA margin of 43.5% compared to pro-forma segmented adjusted EBITDA of $0.2 million and adjusted EBITDA margin of 18.8%.
• Average selling price of indoor whole flower of $1,322/pound.
• Indoor production run rate expected to increase to 750 pounds/month in the second quarter of 2022.
• Top 10 flower wholesalers in Michigan, according to LeafLink’s MarketSpace data.
• Subsequent to quarter-end, Grown Rogue launched nitrogen-sealed pre-rolls.

Related News

• Grown Rogue 2021 Revenue Increases 121% YoY, Continues Expansion In Michigan & Oregon
• Grown Rogue Q4 Revenue Up 24% QuQ, Achieves Eighth Consecutive Quarter Of Adjusted EBITDA
• Michigan Cannabis Extraction Co Pure Grown Extracts Receives Medical Pre-Qualification Status Letter
• Grown Rogue Raises $1.3M Via Private Placement, CEO Invests $300,000 For 3M Shares

Photo: Courtesy of Alexander Mils on Unsplash