Grown Rogue International Inc. (CSE: GRIN |OTC: NVSIF) released its financial and operating results for the first three month ended January 31, 2019. Grown Rogue is a multi-state cannabis company with licenses and operations in California, Michigan, and Oregon.
The company reported that for the first quarter of fiscal 2019, revenue rose to $834,309 or an increase of 388% over the same period last year. This, the company said, can be attributed to improving sales numbers, increased internal sales force, third party distribution, and increased awareness of the Grown Rouge brand.
This vastly improved revenue numbers are largely due to is indoor and outdoor flower production which took 55% of total sales. The rest came from sales of its concentrates (oil cartridges and extracts), pre-rolls, 3rd party products and a new edibles line launched in December of 2018.
- First quarter revenue grew 388% year-over-year to $834,309 and is expected to continue as the Company proceeds with its expansion plans in Oregon, California and Michigan.
- Gross margin improved to 31% compared to negative gross margin Q1-F2018.
- Grown Rogue products in over 220 dispensaries in Oregon.
- Launched innovative nitrogen sealed 3.5g glass jars inspired by Grown Rogue’s patent pending nitrogen sealed pre-rolls
- Achieved Oregon outdoor THC potency record and won the prestigious Growers Cup in two of three categories.
- Established partnership with international award-winning chocolatier
- Management expansion including the addition of Adam Wolf as Chief Operating Officer
- Expanded into California
- Signed MOU to expand into the Michigan market through strategic partnership
“Our Fiscal 2019 Q1 represents the first full quarter for Grown Rogue as a public company and marks the Company’s 5thconsecutive quarter of revenue growth since launching first in the state of Oregon in late 2017,” said Obie Strickler, President and CEO of Grown Rogue. “To have gained this brand recognition and sales traction, in what is arguably the world’s most competitive legalized cannabis market, bodes very well for our expansion into California and particularly the newly legalized market in Michigan. We’ve grown very quickly from controlling just 3 licenses in one state a year ago to assets allowing us to have 22 licences in three states today.”
F2019 Q1 gross margin also saw it improve to $256,330, or 31% of revenues. This was a huge improvement from a negative gross margin of $314,205 for the same period last year. Adjustments to the fair market value of the company’s biological value during the same period in 2018 contributed to its poor showing.
About Grown Rogue
Grown Rogue is a seed-to-experience cannabis brand passionate about the environment, community, and education. We operate all facets of our business with principles of transparency and integrity. Our products are always organic meeting Clean Green Certification and our approach to classifying the experience of cannabis is rooted in science.We combine 50 years of cultivation knowledge with a diverse private sector background to bring you a fully integrated cannabis company offering top-shelf flower and extracts, business services for our peers, and education.
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