This Craft Cannabis Company Reports Q3 2023 Results With 48% Revenue Growth

Grown Rogue International Inc. GRUSF recently reported its fiscal third quarter 2023 results for the three months ended July 31, 2023. 

Third Quarter 2023 Financial Highlights

• Revenue surged 48%, from $4.3 million to $6.3 million in Q3 2022.
• Operating Cash Flow (OCF), before changes in working capital (BC WC), reached $1.9 million, up from $0.9 million in Q3 2022.
• The company achieved a Free Cash Flow (FCF) of $1.1 million, after spending $0.8 million on working capital and capital expenditures.
• Grown Rogue also secured $5 million in gross proceeds through a convertible debenture financing in July and later closed a second tranche for a total of $6 million in gross proceeds.
• Subsequent to the quarter-end, $1,650,000 of the company's existing convertible debentures were converted, leaving a total convertible debt of $6,350,000.
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Strategic Partnerships and Market Highlights

Grown Rogue announced a strategic advisory agreement with Goodness Growth Holdings, Inc., focusing on improving operations in Minnesota and Maryland.

In the Oregon market, the company reported these results:

• Revenue reached $3.2 million, up 35% from $2.4 million in Q3 2022.
• Grown Rogue maintained its position as the #1 flower brand for nine consecutive quarters, according to LeafLink's MarketScape data.
• The launch of a 10-pack craft pre-roll product garnered positive initial traction.
• The company moved up to the #2 total wholesaler in the state from #3, according to MarketScape.

In Michigan, the company also demonstrated substantial growth:

• Revenue soared to $2.8 million, a 53% increase from $1.9 million in Q3 2022.
• Grown Rogue launched strain-specific packaging, resulting in higher pricing and product mix for pre-packaged products.
• Michigan sales hit a record $277 million in August, making it the second-largest market in the U.S.

Management and Market Outlook

"Our $6.3M in revenue continues an upward trajectory with a sequential increase of 5%, after last quarter's 18% increase over our previous record quarter," said Obie Strickler, CEO of Grown Rogue.

"Our year-over-year revenue and EBITDA growth of 48% and 79%, respectively, shows our commitment to controlling costs and our focus on producing high-quality cannabis products that delight our team and customers."

Price Action: GRUSF shares were trading up 4% at $0.26 per share Thursday afternoon.

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