Growgeneration ( (GRWG) ) has released its Q4 earnings. Here is a breakdown of the information Growgeneration presented to its investors.
GrowGeneration Corp., a leading U.S. retailer and distributor of hydroponic and organic gardening products, has reported its financial results for the fourth quarter and full year of 2024. The company specializes in indoor and outdoor gardening supplies and operates a significant number of retail locations across the country.
In 2024, GrowGeneration experienced a net sales decline to $188.9 million, with proprietary brand sales increasing to 24.2% of total cultivation and gardening sales. The company ended the year with a strong cash position of $56.5 million and no debt, despite a net loss of $49.5 million, attributed mainly to restructuring expenses.
Key financial highlights include a decrease in gross profit margin to 23.1% due to strategic inventory rationalizations, and a reduction in store operating expenses by 16.4% following the consolidation of 19 retail locations. Proprietary brand sales showed significant growth, contributing to 30.4% of cultivation and gardening net sales in the fourth quarter, driven by strategic initiatives and product launches.
Looking ahead, GrowGeneration’s management is optimistic about 2025, projecting revenues between $170 million and $180 million, with potential for a break-even or profitable adjusted EBITDA. The company aims to enhance gross profit margins and continue expanding its proprietary brand sales, targeting 35% of cultivation and gardening net sales by the end of 2025.