Green Growth Brands Significant Revenue Growth Driven by CBD Retail Expansion
- Total first quarter fiscal 2020 revenues increased 77% quarter-over-quarter to $12.7 million
- Well-positioned for upcoming holiday season with network of 193 CBD shops
COLUMBUS, OH, Nov. 25, 2019 /PRNewswire/ – Green Growth Brands Inc. (GGB or the Company) (CSE: GGB) (OTCQB: GGBXF) today reported its results for the thirteen-week period ended September 28, 2019. Revenues for the period totaled $12.7M.
“As we approach the holiday shopping season, we are confident in our growth trajectory,” said Peter Horvath, CEO of Green Growth Brands. “We are proud of the topline growth we accomplished in Q1 and are extremely pleased with our current results, which are an indication of future growth. In fact, the four weeks of fiscal November, retail CBD sales were two-thirds of our total CBD sales reported in all of the thirteen weeks of first quarter fiscal 2020, which we are reporting today. This topline growth is reflective of our shift from investing in the foundation of our CBD business to focusing on its execution.
In a very short-time we have grown a meaningful CBD footprint. We believe our products, network of shops, rapidly growing web business and wholesale relationships position us as a leader in the industry. In the coming quarters we look-forward to reporting similar trends and results for our MSO segment of the business.
Peter Horvath, CEO of Green Growth Brands
As we begin to reach scale our consumer and operations expertise will be clearly reflected, not only in the customer experiences we create and the loyalty we drive, but also in our financials as we work towards profitability.
View Seventh Sense’s holiday campaign and holiday gifting assortment here.
GGB will host a conference call and audio webcast with Chief Executive Officer, Peter Horvath, Chief Operating Officer, Randy Whitaker, and Chief Financial Officer, Brian Logan, at 8:30 AM EST on Tuesday, November 26, 2019.
First Quarter Fiscal 2020 Highlights
- Total revenue for the period was $12.7 million, a sequential increase of 77% over the prior quarter.
- Pro forma revenues for the quarter were $15.3 million, reflecting a full quarter of revenue from The+Source Henderson, which was acquired on August 28, 2019.
- MSO revenues for the quarter were $7.6M, a sequential increase of 38% over the prior quarter, primarily driven by the acquisition of The+Source Henderson.
- The two Nevada-based The+Source dispensaries continue to generate annualized revenue of nearly $15,000 per selling square foot. A best-in-class figure in the cannabis industry and in retail overall.
- CBD revenue for the quarter was $5.1 million, a sequential increase of 201% over the prior quarter. Growth was primarily driven by additional mall-based shop openings, growth in wholesale, and increased overall brand awareness. The Company expects to achieve over $10 million in CBD revenues in second quarter fiscal 2020.
- The Company opened 81 mall-based CBD shops during the quarter, bringing the total number of shops open at quarter’s end to 139 in 34 states. The Company currently operates 193 shops.
- The Company began filling American Eagle Outfitter’s white label order for ‘Mood’ during the quarter. Performance indications are strong, and the Company expects to continue partnering with American Eagle.
First Quarter Fiscal 2020 Financial Statements
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. All financial information is provided in United States dollars, unless otherwise indicated. “Adjusted EBITDA” is equal to net income (loss) before interest, taxes and depreciation and amortization, plus fair value adjustments on sale of inventory and on growth of biological assets, share-based compensation and payments, loss (gain) on equity investments, loss (gain) on foreign exchange, loss (gain) on short-term investments, transaction costs, listing fees and certain one-time non-operating expenses, as determined by management. Management believes this measure provides useful information as it is a commonly used measure in the capital markets and as it is a close proxy for repeatable cash generated by (used for) operations.
Conference Call Information:
Conference ID: 54236169
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, and 8 Fold. The Company also has a licensing agreement with the Greg Norman™ Brand to develop a line of CBD-infused personal care products designed for active wellness. GGB is expanding its cannabis operations throughout the U.S., via dispensaries in Nevada, Massachusetts and Florida and the largest network of CBD shops in malls across the country and ShopSeventhSense.com. Learn more about the vision at GreenGrowthBrands.com.