- Grown Rogue (CSE:GRIN) has posted their first quarter results for 2020
- The company has tripled gross profit and posted it’s first cash flow for a quarter since going public
- Grown Rogue has assets in Oregon, California and Michigan
- The company has moved into branded product lines to boost profit margins
- Grown Rogue (CSE:GRIN) is trading up 95 per cent at C$0.09 per share with a market cap of $5 million
Grown Rogue (CSE:GRIN) announced today they have “turned the corner” and are cash flow positive for the three months ended January 31.
The company has also posted a tripling of gross profit, as gross margins grew to 53 per cent.
The success came on the back of the company’s move away from low margin third party product distribution into very high margin Grown Rogue branded product sales.
The strategy has borne fruit, with Grown Rogue’s product sales doubling and overall revenue increasing 33 per cent year on year.
Grown Rogue operates a significant site in Oregon, a 90,000 square foot production facility including two outdoor farms and an indoor facility with a production rate of approximately 6,000 pounds.
The company has doubled their average sun-grown flower price versus the first quarter of 2019.
Grown Rogue also announced they generated $150,000 in positive cash flow from operations for the first quarter, the first time the company has returned positive cash flow as a public company.
Their year on year revenue ballooned 33 per cent to $1.1 million, along with their margin rate growing from 20 per cent to 53 per cent.
CEO of Grown Rogue, Obie Strickler, said he was proud of the results, which reflected the streamlined operations and product lines.
“The ability to build a fundamentally sound cannabis business in the incredibly competitive Oregon market has us all very excited about transporting our winning formula to Golden Harvests Partnership in Michigan, one of the fastest growing cannabis markets in the country,” he added.
The company signed an option to acquire, pending regulatory approval, a controlling interest of fully licensed and operating Michigan cultivator Golden Harvests.
Golden Harvest operates a 80,000 square foot cultivation facility in Michigan.
Grown Rogue (GRIN) is up 95 per cent at $0.90 per share, as of 1:40pm EST.