Green Growth Brands Reports Third Quarter Fiscal 2019 Financial Results
First full quarter of results show active MSO growth through acquisition and rapid CBD footprint expansion
COLUMBUS, May 29, 2019 /PRNewswire/ – Green Growth Brands Inc. (GGB or the Company) (CSE: GGB) (OTCQB: GGBXF) today reported its financial results for the third quarter, which ended March 31, 2019.
This quarter we executed our strategy with speed and agility. We made great progress towards establishing our leadership in the industry, by setting new standards for consumer experiences and product. We launched Seventh Sense, began our unprecedented big-bang expansion into hundreds of prime mall-based CBD shops, and grew performance at our premier dispensary, The+Source Las Vegas, through implementing margin accretive retail practices.
Peter Horvath, CEO of Green Growth Brands
We completed the Just Healthy transaction allowing us to enter Massachusetts, and we plan to open new dispensaries in Nevada in the remainder of the calendar year. As an early-stage company, just over a year-in, when most competitors have been operating for 4-8 years, we are proud of the accomplishments we have made. We will continue to drive towards profitability.
GGB will host a conference call and audio webcast with Chief Executive Officer, Peter Horvath, and Chief Financial Officer, Brian Logan, at 8:30 AM EDT on Thursday, May 30, 2019.
Third Quarter 2019 Highlights
- Revenue for the quarter at our Nevada cannabis operations grew to $5.1 million, driven by the influence of retail best practices
- Total revenue, including both MSO and CBD operations was $5.6 million
- The+Source is tracking to annualized revenue of $15,000 per selling square foot, one of the strongest reported metrics in both cannabis and retail1
- Nevada gross margin was 41%, including the impact of fair value biological assets
- Expansion into Massachusetts, through completion of a transaction with Just Healthy LLC (“Just Healthy”), allowing for operation of up to three dispensaries and one cultivation and production facility in Massachusetts. Just Healthy holds provisional certificates of registration for a registered marijuana dispensary in Northampton, Massachusetts, as well as a cultivation and processing site, also located in Northampton.
- Official launch of Seventh Sense with more than 100 SKUs, and growing
- Opening of Seventh Sense mall-based shops with the first shop in Lexington, Kentucky, 6 shops opened during the period. As of May 28th, 2019, the Company has more than 30 locations.
- Launch of Seventh Sense website, ShopSeventhSense.com, allowing for consumers to purchase CBD and personal care and beauty products online
- Launch of Seventh Sense products throughout 98 DSW stores in the U.S.
- Agreement with Simon Property Group to lease up to 108 mall-based CBD shops in prime locations throughout the U.S.
- Launch of CBD eCommerce and our first six mall-based shops
- Licensing agreement with Authentic Brands Group to create Greg Norman branded CBD personal care products
- Expansion of the Executive team with the addition of Randy Whitaker as Chief Operating Officer. Mr. Whitaker brings significant retail and real estate expertise to the Company.
¹eMarketer Retail, “Ecommerce trends and store sales for top retailers”
Third Quarter 2019 Financial Review
The following tables contain financial information for the periods indicated. For full financial information, notes, and management commentary please refer to the MD&A and Financial Statements posted on Green Growth Brands’ Investor Relations site and SEDAR. Please note the use of non-IFRS measures, such as EBITDA and Adjusted EBITDA, which do not have any standardized meaning prescribed by IFRS. These measures are defined within the MD&A. All financial information is provided in U.S. dollars, unless otherwise indicated.
Conference Call Information:
Conference ID: 57219236
Local Toronto Dial-in Number: (+1) 416 764 8609
Local Vancouver Dial-in Number: (+1) 778 383 7417
North American Toll-Free Number:(+1) 888 390 0605
The call and replay archive will be accessible on Green Growth Brands’ Investor Relations website.
About Green Growth Brands Inc.
Green Growth Brands creates remarkable experiences in cannabis and CBD. Led by CEO Peter Horvath and a leadership team of consumer-focused retail experts, the Company’s brands include CAMP, Seventh Sense Botanical Therapy, The+Source, Green Lily, Meri + Jayne, and has a licensing agreement with the Greg Norman Brand. Already boasting the strongest sales per square feet in the cannabis industry, GGB is expanding its cannabis operations throughout the U.S., its CBD presence at ShopSeventhSense.com, in malls across the U.S. and at DSW shoe stores—and that’s just the beginning. Learn more about our vision at GreenGrowthBrands.com.