Grown Rogue International Inc. (CSE: GRIN) (OTC: GRUSF) saw a slight slump in revenue over the quarter as the craft cannabis company operating in Oregon and Michigan released its third-quarter financials for the period ending July 31.
Grown Rogue saw $4.3 million in total revenue for the quarter, slipping 9% sequentially versus $4.7 million in the previous quarter; but up versus $3.03 million in the same period last year.
In Oregon, revenue ticked up 1.7% to $2.4 million versus $2.36 million in the previous quarter. Michigan’s earnings fared worse, as revenue in the state dipped 20% versus the second quarter financials ($1.85 million versus $2.34 million).
The company also retained $571,400 in net income ($120,157 after income taxes), its fifth consecutive quarter of positive net income.
“At Grown Rogue, we are laser-focused on our mission of delivering affordable, craft-quality cannabis to an increasing number of cannabis consumers,” said CEO Obie Strickler. “To further that mission, we focus on increasing our efficiencies while ensuring customers experience quality expressions of leading genetics, and our operational results continue to reflect the success of that focus.
This scale and operating leverage have resulted in the leading position in the Oregon flower market and a top 10 position in Michigan. I am particularly pleased with our 40% year over year revenue growth and 51% year over year adjusted EBITDA growth, despite continued market headwinds.”
The company said it posted its tenth consecutive quarter of positive adjusted EBITDA and its fourth consecutive quarter above $1 million. Total liabilities decreased $1.44 million from the second quarter and working capital rose to $390,000.
Through Golden Harvests, Grown Rogue also built out its 14th growing room in Michigan with first harvests expected in the fourth quarter. The company boasted that its flower brand is the number one line in Oregon for the fifth consecutive quarter, and is the fastest growing flower brand for the fifth time in the last twelve months, according to LeafLink’s MarketScape data.
Grown Rogue exchanged $160,000 in legacy investment assets for $700,000 worth of debt forgiveness.
“We are now focused on continuing to delight customers in Oregon and Michigan while evaluating opportunities to enter new markets while remaining disciplined in our capital allocation,” said Strickler. “I look forward to bringing Grown Rogue to new markets and consumers and will be updating shareholders on these efforts in the future.”