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

Jelena Martinovic , Benzinga Staff Writer

April 04, 2022 8:51am Comments

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

Grown Rogue International Inc. (CSE: GRIN) (OTC: 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.