CEO Reports "Strong Growth", This Cannabis Company Just Released its First-Quarter Financials

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The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

Companies in the cannabis industry like Tilray Inc. TLRY and Canopy Growth Corp. CGC dominate a market that brought in $17.5 billion in 2020. That’s a 46% increase from 2019. By 2025 the industry should pull in revenue of $43 billion with a compound annual growth rate (CAGR) of 16%, according to the research firm New Frontier Data.

Despite revenue growth, however, many companies in the space have been reporting net losses. Cannabis operations are capital intensive.

One example of an exception is Grove Inc. GRVI, which recently released its first-quarter financial report showing positive growth for the company and earnings before interest, taxes, depreciation, and amortization (EBITDA) of $1.4 million.

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

“We made two significant acquisitions during the first quarter, substantially broadening our footprint in strong growth sectors. VitaMedica, completed in August gives Grove a solid presence in the nutraceutical market, and the August acquisition announcement of Interactive Offers stakes our presence in the programmatic advertising market, estimated by some to be a $95.5 billion market by 2026. Continued cash-flow growth allowed us to make these acquisitions without a meaningful reduction in our cash balance, which ended the quarter at $13 million. We look forward to continued momentum through the balance of the 2022 fiscal year.”

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

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