Grown Rogue International Inc. (CSE: GRIN) (OTC: GRUSF) reported its fiscal second-quarter 2022 results for the three months ending April 30, 2022. Grown Rogue reported revenue rose 72% to $4.7 million versus $1.37 million for the same time period last year. Sales also rose sequentially from the first quarter’s revenue of $3.73 million.
The company delivered a net income of $144,734 versus last year’s net loss of $1.4 million. The company said this was the fourth consecutive quarter of positive net income and positive operating cash flow, before changes in working capital.
“Grown Rogue had another very strong quarter, reporting positive operating cash flow, net income, and free cash flow,” said Obie Strickler, CEO of Grown Rogue. “In Q2, we estimate we had one of the lowest average indoor selling price of any public cannabis company at $872 per pound of whole flower ($1.92 per gram) while reporting 23% operating cash flow margins, before changes in working capital”, continued Mr. Strickler. “We continue to evaluate opportunities for new markets where we can bring our craft quality and efficiencies to provide better access for patients and consumers. Oregon had a particularly strong quarter with revenue up 70% quarter over quarter even while the overall market was down slightly. The company launched pre-rolls in Michigan during the quarter and we are excited about the initial receptivity in this category. I could not be more proud of our team as we were north of $1M in EBITDA for the third consecutive quarter and have established Grown Rogue as the consistent market leader in the Oregon flower market, one of the most competitive states in the US. We are laser-focused on continuing to become more efficient while staying on trend with leading genetics and quality.”
Breaking down the revenue results, Grown Rogue’s Oregon market delivered revenue of $2.36 million compared to $1.37 million in the second quarter of 2021, an increase of 72%. It also jumped from the first quarter’s revenue of $1.39 million. The average selling price of indoor whole flower was $719 per pound. The price dropped from the first quarter price of $781 per pound. The monthly indoor production increased to approximately 800 pounds of whole flower in the second quarter, with expectations to be at or near 1,000 pounds per month in the third quarter.
The Michigan market reported revenue of $2.34 million compared to pro-forma revenue of $1.38 million in the second quarter of 2021, an increase of 70%, but flat from the first quarter’s sales. The average selling price of indoor whole flower was $1,182 per pound. The price also fell in Michigan from the first quarter’s $1,322 per pound. The monthly indoor production of whole flower increased to approximately 550 pounds in the second quarter of 2022, with expectations to be at or near 750 pounds per month in the third quarter.