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CEO Announces ‘Strong Growth’ This Cannabis Company Just Released Its First Quarter Financial Statements

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photo from photography Esteban Lopez employment Unsplash

The following post was written and/or published as a collaboration between the Benzinga sponsored content team internally and Benzinga’s financial partner.

Companies in the cannabis industry such as Tilray Corporation (NASDAQ:TLRY) And Canopy Growth Corp. (NASDAQ:CGC) dominate a market that brought in $17.5 billion in 2020. That’s a 46% increase over 2019. By 2025, the industry should generate $43 billion in revenue with a compound annual growth rate (CAGR) of 16%, according to the research firm. New frontier data.

Despite revenue growth, many companies in the space reported net losses. Cannabis operations are capital intensive.

One example of an exception is Grove Company (NASDAQ:GRVI), which recently released its first-quarter financial report that showed positive company growth and EBITDA of $1.4 million.

“Grove’s first-quarter financial results reflect strong growth in revenue, net income and cash flow as our team continues to implement our vision to transform the landscape of how cannabis and wellness products are produced, bought and sold,” Grove CEO Allan Marshall said. “Seasonally, our first quarter is typically our slowest business, however $8.4 million is indicative of accelerated growth and sets us up for a strong fiscal year. Our revenue increased primarily driven by strong growth in new product sales from our direct-to-consumer business.”

We made two major acquisitions during the first quarter, significantly expanding our presence in strong growth segments. Vita Medica, completed in August, gives Grove a strong presence in the nutrient market, and acquisition announcement in August Interactive Shows Our share of our presence in the automated advertising market, which some estimate will reach $95.5 billion by 2026. Continuous growth in cash flow has allowed us to make these acquisitions without a significant reduction in our cash balance, which ended the quarter at $13 million. We look forward to continued momentum throughout the FY 2022 budget.”

If you’re interested in learning more about Grove, check out https://groveinc.io/.

The previous post was written and/or published as a collaboration between the Benzinga sponsored content team internally and Benzinga’s financial partner. Although the article is not and should not be construed as editorial content, the Sponsored Content team works to ensure that any and all information contained in it is true and accurate to the best of their knowledge and research. This content is for informational purposes only and is not intended as investment advice.

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