While some cannabis companies are seeing weakening sales, Grown Rogue continues to move up
Grown Rogue International Inc. is a cannabis company operating in several states across the country, with most operations and assets located in Oregon, California and Michigan. It has recently presented its numbers for its fiscal year that ended on October 21, 2019, with positive results. It was its first year being traded publicly and Grown Rogue doubled its total revenue, increasing its margin from 2% to 25%. Through a solid strategic growth focus on profitability, the company has improved on his financial performance.
“We are very pleased with our continued growth and efficiency as evident in the doubling of our revenue and increasing our margin from 2% to 25%,” said Obie Strickler, CEO Grown Rogue. “Cannabis is still a new industry so we are constantly learning, and Oregon is one of the most competitive markets in the country, which accelerates the need for us to evolve plans to drive success. For example, in Q4 2019 we started executing our ‘Futures’ strategy in which we sign lucrative contracts today for future harvests of our premium cannabis. The timing was excellent, as sun-grown prices for the 2019 harvest were double those of 2018, which allowed us to lock in a consistent revenue stream and reduce volatility in monthly cash flow. This approach to cannabis sales is unique and an element of our business that we will be able to transport to other states along with our tried and tested SOPs.”
Certainly, being present in a market that is not bursting with competition has given Grown Rogue an edge, more so with the unpredictable legalization of adult sales. Oregon has given the company the chance to test and evaluate every aspect of its operations in order to optimize its profitability. Strickler adds, “Over the past year, we have built a strong organization with cannabis and ‘traditional’ industry experience, which has allowed us to take best practices and strategies from more established companies. We are leveraging those to drive ideas and efficiencies resulting in significant increases to revenue and margin in the states we operate.”