The hydroponic specialty company continues to see its sales increase each quarter
The past week has brought great things for one cannabis venture that has seen its stock value soar a whopping 20.1% as of Monday morning. GrowGeneration, a specialty hydroponic and organic gardening retailer providing services to several industries including cannabis, presented its financial results for its second quarter and, combining all increases in the stock value since the results were presented, the price per share has increased by over 80%. With these impressive numbers, it comes as no surprise that this company is drawing some attention from more investors.
Its latest financial report shows another quarter in which the revenue has hit record values, and it has been like this for the past ten quarters. In a year-over-year comparison, total sales have increased by 123% to $43.5 million. Additionally, the adjusted EBITDA made a huge jump of 166% to $4.6 million.
The spike in sales was influenced by a couple of factors that have created particular circumstances. First, the explosion of the US cannabis market that brings more business to the company as it provides growers’ hydroponic and organic gardening needs. Second, the COVID-19 pandemic increased the demand for organic gardening as people are staying home and opting for growing their own plants.
From anywhere that is seen, GrowGeneration is poised to have a bright future. Full-year sales for this 2020 are expected to be between $170 million and $175 million, with earnings around $7 million to $8 million. Its projections for 2021 are even more impressive, with sales between $245 million and $260 million.