Grown Rogue International Inc. (CSE: GRIN) (OTC: GRUSF) posted temperate earnings results that show rising revenue and positive free cash flow. The craft cannabis company operating in Oregon and Michigan reported its unaudited results for the fourth quarter ending October 31.
Grown Rogue posted revenue of $5.07 million, a 35% rise versus $3.76 million in the fourth quarter last year. It also improved over the previous quarter’s revenue of $4.2 million. Net loss totaled $397,324 for the quarter, down from a $431,000 net income in the same time last year.
“I couldn’t be more thrilled about our record revenue and adjusted EBITDA, closing out a record year including achieving positive free cash flow for the year,” said CEO Obie Strickler. “It’s even more exciting to watch our team continue to increase market share in Oregon and Michigan by staying true to our focus towards ensuring customers experience leading craft quality and genetics at an attractive value.”
Adjusted EBITDA for the quarter came out to $1.66 million versus $1.2 million in the same quarter last year, “up 39%, despite pricing headwinds in our markets, particularly in Michigan,” the Strickler added. The gross margin was 63.4% in the quarter before fair value adjustments.
Grown Rogue held the crown for the top flower brand in Oregon for the sixth consecutive quarter, according to LeafLink’s MarketScape data. Over the year, total harvested wet weights for the state of Oregon fell 13% for indoor and 21% for outdoor, respectively. “In Oregon, we saw continued reduction in total supply as many cultivators exit or scale back their business, which should result in a pricing rebound in 2023,” Strickler said.
The company also closed on a $2 million convertible debenture financing arrangement over the period.
“It’s also great to see a shifting of investor sentiment towards strong operators and management teams reflected in our recently closed a $2 million convertible debt financing with Mindset Capital at very attractive terms to the company,” Strickler said. “We are planning to continue our disciplined approach to capital allocation as we look to accelerate expansion plans into new markets. I look forward to updating Grown Rogue shareholders on these efforts in the future.”