Cannabis company Grown Rogue International Inc. (CSE:GRIN) (OTC:GRUSF) reported audited results for the fiscal year ended October 31, 2021.
“Grown Rogue grew substantially in 2021 driven by continued expansion in Michigan and Oregon,” Obie Strickler, CEO of Grown Rogue, said. “Our focus on building the premier craft flower company at scale is being realized in all aspects of our business particularly quality, yield, and costs per pound.”
2021 Full Year Financial Results
- Revenue totaled $9.4 million, compared to $4.3 million in 2020, an increase of 121%.
- Gross profit was $5.2 million (56% margin), before fair value adjustments, compared to $1.8 million (43% margin) in 2020, an increase of 188% and 1300 basis points.
- Adjusted EBITDA was $2.2 million (24% margin) compared to $0.3 million (6% margin) in 2020, an increase of 797% and 1800 basis points.
- Positive adjusted EBITDA for eighth consecutive quarters, including pro-forma results.
- Cash flow from operations, before changes in working capital, was $1.9 million compared to ($0.2M) in 2020.
- Fourth quarter of 2021 contributed $1.2 million of adjusted EBITDA and $0.9 million of cash flow from operations, before changes in working capital, as efficiencies and added production were realized.
- Total assets of $14.2 million at year end compared to $3.8 million at year end 2020, an increase of 277%.
- Raised gross proceeds of $6.6 million in fiscal 2021 to fund expansion.
- Subsequent to year end, Grown Rogue raised $1.3 million in a non-brokered private placement, including $1 million from Bengal Capital, a venture capital firm with significant cannabis expertise, and $0.3 million from the company CEO.
- Michigan operations (through Golden Harvests, LLC) report industry leading gross margin of 73% (before fair value adjustments) and segmented adjusted EBITDA margin of 58%.
2021 Full Year Business Highlights
- Increased indoor whole flower production from 400 pounds/month in the first quarter of 2021 to 1250/month in fourth quarter of 2021.
- Launched branded 1/8oz flower bags and our patented nitrogen sealed jars in Michigan market.
- Fastest growing brand in Oregon in September and October, according to LeafLink.
- Exited calendar 2021 as a top 10 flower wholesaler in Michigan, according to LeafLink’s MarketScape.
- Exercised option, through Canopy Management, LLC, to acquire 60% controlling interest in Golden Harvest, LLC, allowing consolidation of financial results from Michigan.
- Retired senior secured convertible debentures.
“The company continues to gain market share in both Oregon and Michigan as our customers and retail partners value our quality, consistency, and service. Our recent soft launch of nitrogen sealed pre-rolls in Michigan has been well received and we are excited to push into additional product categories in 2022,” Strickler added.
Photo: Courtesy of Viacheslav Bublyk on Unsplash
