Grown Rogue International Inc. (CSE:GRIN) (OTC:GRUSF) reported its second-quarter 2024 results on Tuesday for the three-month period ended June 30, 2024.
The Oregon-based company said the comparison period for 2023 is the three months ended July 31, 2023, due to the recent fiscal year-end change from Oct. 31 to Dec. 31.
“This was another exciting quarter for Grown Rogue with record revenue and aEBITDA showing the continued execution by our team," said Obie Strickler, CEO of Grown Rogue. "We continue to see strong sell-through, record indoor production in both yield and revenue, continued consumer loyalty with our existing products, and strong consumer response to our new, branded pre-rolls – moderated somewhat by market pricing softness in Oregon and Michigan in the quarter."
Read Also: Grown Rogue Reports Record Q1 Revenue, CEO Calls These Two States ‘Primary Growth Drivers’
Q2 2024 Cannabis Earnings
- Revenue totaled $7.7 million, representing a 23% increase compared to the three months ended July 31, 2023.
- Adjusted EBITDA came in positive at $2.5 million, representing a 21% improvement compared to the three months ended July 31, 2023.
- Gross profit amounted to $3.4 million, up from $3.1 million for the period ended July 31, 2023.
- Net loss was $7.6 million, compared to net income of $345,488 in the period ended July 31, 2023.
- Operating cash flow, before changes in working capital, was $1.2 million compared to $1.9 million in the three months ended July 31, 2023, representing a decrease of 38%. That's due to an increased ramp of selling, administrative and general spending in preparation for the launch of New Jersey in the second half of fiscal 2024 and one-time royalty and consulting payments to the company's Michigan partner only incurred in 2024.
- Free cash flow of $0.9 million, after accounting for $1 million in cash advances to fund construction in New Jersey cultivation facility.
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What's Next: New Jersey And Illinois
"Our primary growth drivers in 2024 and 2025 continue to be our expansion efforts in New Jersey and Illinois," Strickler continued. "We expect sales in New Jersey in the fourth quarter of this year and will have an update on the specific timing very soon."
In New Jersey, the company received licensing approval and closed option 1 to acquire 44% of ABCO Garden State, LLC, the company’s New Jersey operation.
"Illinois design and engineering is underway, and we are targeting sales starting in the second half of 2025," Strickler said. "Our plan for expansion remains one new market every 9 to 12 months, but we are only going to swing at the fat pitches.”
The company unveiled its plans to enter the Illinois cannabis landscape earlier this year. This move is cemented by a partnership with EBC Ventures, establishing Rogue EBC LLC, a joint venture poised to reshape the craft cannabis segment in the Prairie State.
Illinois is slated to host the Benzinga Cannabis Capital Conference, North America’s premier cannabis investment and branding event this fall. The event is set to take center stage again on October 8-9, 2024, at the Marriott Magnificent Mile in Chicago.
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GRUSF Price Action
Grown Rogue's shares traded 3.23% higher at $0.64 per share after the market close on Monday afternoon.