Net revenue for the quarter was $19.48 million, up from $7.15 million in the same period of the previous year. The company attributes the increase in revenue to the addition of 14 new retail stores, some of which were acquired or recently opened after April 1, 2018, as well as the launch of the company’s new e-commerce site. When combined, the new stores and the e-commerce platform contributed approximately $12.7 million in revenue. Gross profit also rose from $1.7 million to $5.8 million. As a percentage of sales, gross profit was 29.9%.
The cost of goods sold rose approximately 152%, from $5.4 million in the previous year to $13.7 million. The increase of costs was attributed to increased sales and the increase in the number of retail stores. Year-over-year, net income rose from a loss of $929,959 to a net positive of $1.06 million.
As of June 30, 2019, the company has approximately $17.9 million in cash and cash equivalents and a working capital of $29.6 milliom.
In the last quarter, the company appointed former Home Depot CEO Bob Nardelli as Senior Strategic Advisor and completed a $12.8 million financing round led Gotham Green Partners, Merida Capital Partners and Navy Capital. GrowGeneration acquired six new retail locations in Denver, Colorado; Palm Springs, California; Reno, Nevada; and Manchester, New Hampshire. The company also opened new stores in Maine and Oklahoma.
“The Company’s second quarter financial results reflect our company’s continued focus on revenue growth and EBITDA expansion. We improved the financial performance of the Company in all areas.” said GrowGeneration Co-Founder and CEO, Darren Lampert. “The newly acquired stores and new store openings are all performing better than expected and have been successfully integrated into the operations of the overall company. The Company has nearly $18.0 million in cash, which will allow the Company to continue to grow at a rate of 100% year over year.”