Cannabis Co. Grown Rogue Reports 7% Increase In Q3 Revenue, Focuses On New Jersey And Illinois Expansion

Grown Rogue International Inc. GRIN GRUSF reported its third quarter 2024 results on Thursday for the three months ended Sept. 30, 2024.

"This was another exciting quarter for Grown Rogue with solid financial metrics showing the continued execution by our team in competitive markets against a backdrop of modest price compression," CEO Obie Strickler said. "We continue to see strong indoor production yields of craft-quality flower, retail buyer and consumer loyalty, and great initial reception and sell-through with our branded pre-rolls, including our newest brand Yeti."

Q3 2024 Financial Highlights

The comparison period for 2023 is the three months ended Oct. 31, 2023, due to the fiscal year-end change from Oct. 31 to Dec. 31.

• Revenue totaled $7 million, up 7% compared to $6.5 million in the fourth quarter of 2023.
• Gross profit amounted to $3.9 million, a decrease from $4.4 million in Q4 2023, primarily due to lower margins in Oregon and pricing pressures.
• Adjusted EBITDA was positive at $2.1 million, unchanged from the previous quarter. Its margin was 30%, down 210 basis points from the fourth quarter of 2023.
• Operating cash flow was $1.21 million, down 24% from $1.5 million in the fourth quarter of 2023. The decrease was attributed to increased spending on the New Jersey market launch.
• Operating expenses increased by 35% to $2.95 million due to higher selling, general and administrative expenses.
• The net loss was $667,240, an improvement from the $2.01 million recorded in the same period last year.
• Cash and cash equivalents totaled $5.6 million, down from $6.8 million as of Dec. 31, 2023.
• Positive cash flow of $5.01 million for the quarter.
• Total assets grew to $41.3 million, up from $29.6 million at year-end 2023.

Read Also: Grown Rogue Cannabis Reports Record Q2 Revenue And Adjusted EBITDA, NJ And Illinois Major Growth Drivers

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Other Business Highlights

In New Jersey, Grown Rogue announced competition of the company's first harvest in the state, with product drops expected in Dec. 2024. The company is optimistic about generating significant cash flow from this market.

It also announced the commencement of phase I operations in the Garden State, which includes roughly 8,000 square feet of flowering canopy that will produce 500-600 pounds of whole flower per month with sales anticipated in the fourth quarter of 2024.

In Illinois, phase II construction is progressing, with a target of 1,100 pounds of whole flower production per month once completed in mid-2025.

Subsequent to quarter-end, the company announced the termination of an advisory agreement with Vireo Growth Inc. VREOF.

Outlook

Grown Rogue said it will focus on its New Jersey and Illinois expansions as primary growth drivers for 2025.

Additionally, Phase II of the New Jersey operation is expected to be completed by mid-2025, with the Illinois project following later in the year.

GRUSF Price Action

Grown Rogue's shares traded 2.94% higher at 7 cents per share after the market close on Thursday afternoon.

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