GrowGeneration sees its 2018 revenue grow triple digits on the back of new retail stores

GrowGeneration Corp (OTCMKTS:GRWG) reported its annual financial results Monday, sending its shares soaring, before settling by the end of the day. 

The Denver-based chain, which specializes in hydroponic and organic garden centers, reported revenue of US$29 million for the year ended Dec. 31, 2018, compared to approximately US$14.4 million in the same period in 2017, an increase of $14.6 million, or 102%. 

According to the company, much of that was due to the addition of nine new retail stores and one e-commerce site during 2018, as well as three stores which were only open for part of 2017, versus all of 2018.

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“This was our 5th consecutive year of record growth for GrowGeneration, with revenues growing over 100% year over year,” said co-founder and CEO Darren Lampert in a statement. “We continue to focus on expanding our “just in time” supply chain, through new store openings and acquisitions. GrowGen is now EBITDA profitable, starting in Q1 2019. With our corporate foundation now in place, the company is well positioned to continue 100% year over year growth for several more years.”

The company is the largest hydroponic equipment supplier in the US, with 21 organic garden centers, across eight states. 

The company reported a net loss of US$5 million in 2018, up from US$2.5 million in 2017. The company had US$14.6 million in cash and cash equivalents as of December 31, 2018 and working capital of US$21.6 million. 

Shares of GrowGeneration closed down 0.5% at US$3.00. 

Contact Katie Lewis at [email protected]

Story by ProactiveInvestors