GrowGeneration Corp. recently held its First Quarter 2024 Earnings Conference Call, where they discussed their financial results for the quarter. The company reported revenue of $47.9 million and an adjusted EBITDA of a $2.9 million loss. They highlighted that their retail stores experienced positive same-store sales for the first time in nine quarters, indicating a stabilization of sales and the effectiveness of their strategic adjustments over the past two years. They also reported growth in their proprietary brand sales and sequential gross margin improvement from the previous quarter.
The company’s strategic focus for 2024 includes expanding their brand portfolio, growing their customer base, and prioritizing profitability through cost control and margin expansion. They are seeing accelerating adoption of their proprietary brands, with 22.6% of total gardening and cultivation sales generated from their proprietary brand portfolio. They are particularly excited about the momentum within their Drip Hydro powdered nutrients and are working on strengthening their relationships with manufacturing partners.
In addition to expanding their offerings, GrowGeneration is also working on developing new vertical markets within their existing products. They are targeting the home and edible gardening markets with their Harvest Company line of proprietary products and are looking to enter the high-value greenhouse nursery and floriculture verticals later this year. The company remains committed to investing in customer success, offering industry-leading products, competitive prices, financing options, and comprehensive inventory management solutions.
During the call, they also addressed the significant news that the DEA agreed to reschedule cannabis from a Schedule 1 to a Schedule 3 controlled substance. This regulatory change is expected to ease restrictions on cannabis research and allow state legal cannabis operators to take federal tax deductions for business expenses. The company is actively assessing the impact of this change on their operations and strategic opportunities. They are also continuing to seek opportunities to monetize their Storage Solution segment, MMI.
The company reiterated their guidance for full year 2024, with anticipated net revenue in the range of $205 million to $215 million and adjusted EBITDA ranging from a $2 million loss to a $3 million profit. They expressed confidence in their strategic direction and business model, highlighting their commitment to driving a more nimble and profitable business long-term. The call concluded with a focus on operational excellence, strategic growth initiatives, and profitability as GrowGeneration looks forward to continued success in the evolving market landscape.
