Green Growth Brands: Q1 2020 Results Are Out

Green Growth Brands (GGB) (GGBXF) reported its earnings results for the first quarter of 2020 on Monday after the market closed. November is a cannabis earnings month. Major Canadian cannabis players like Aurora Cannabis, Canopy Growth, and Cronos Group also reported disappointing earnings this month. Let’s see how Green Growth Brands performed.

Green Growth Brands: Q1 2020 Results Are Out

Green Growth Brands’ results

For the first quarter of 2020 ending in September, Green Growth Brands reported revenues of $12.7 million—an increase of 77% sequentially. The company also achieved revenues of $15.3 million during the quarter from its The+Source Henderson acquisition. The company attributed its sequential revenue increase to its CBD expansion across the US.

Sequentially, Green Growth Brands’ CBD revenues for the quarter rose 201% to $5.1 million. In a press release, the company said, “Growth was primarily driven by additional mall-based shop openings, growth in wholesale, and increased overall brand awareness.”

Management’s view 

In the first-quarter press release, Green Growth Brands CEO Peter Horvath said, “As we approach the holiday shopping season, we are confident in our growth trajectory. We are proud of the topline growth we accomplished in Q1 and are extremely pleased with our current results, which are an indication of future growth. In fact, the four weeks of fiscal November, retail CBD sales were two-thirds of our total CBD sales reported in all of the thirteen weeks of first-quarter fiscal 2020, which we are reporting today. This topline growth is reflective of our shift from investing in the foundation of our CBD business to focusing on its execution.”

Green Growth Brands’ management is very optimistic about its CBD expansion. Notably, the company opened 81 mall-based CBD shops during the first quarter. Currently, Green Growth has 193 shops. The company expects to achieve more than $10 million in CBD revenues in the second quarter of fiscal 2020.

Other cannabis companies’ earnings 

Green Growth Brands’ Canadian cannabis player, Canopy Growth (CGC) (WEED) disappointed investors with the lower-than-expected earnings for the second quarter of fiscal 2020. The company’s revenues of 78.6 million Canadian dollars were below analysts’ estimates. Canopy Growth also reported a negative EBITDA of 155.7 million Canadian dollars. To know more, read Canopy Growth Stock Falls after Weak Q2 Earnings.

Aurora Cannabis’s (ACB) revenues increased 153.5% YoY but missed the consensus estimates for the first quarter of 2020. The company’s adjusted EBITDA was around -39.67 million Canadian dollars. Read Aurora Cannabis: Good or Bad News for Its Q1 Earnings? to learn more.

Cronos Group (CRON) also reported weaker third-quarter earnings this month. The company missed analysts’ revenue estimates. Cronos Group also reported a negative EBITDA of 23.93 million Canadian dollars. Read Cronos Group’s Q3 Earnings: Good or Bad News? to learn more.

Curaleaf (CURLF) reported a positive adjusted EBITDA of $9 million for the third quarter. The company also reported a 189% increase year-over-year in its total revenues to $61.8 million in its third-quarter results. To learn more, read Curaleaf Impressed with Strong Q3 2019 Earnings.

Green Growth and peers’ stock performance

Green Growth Brands closed with a loss of 1.6% on Monday, while Curaleaf stock fell 2.9%. Curaleaf stock has gained 9.0% since its results on November 19. GMP sees more upside potential for the stock. To know more, read Curaleaf Stock: GMP Expects More than 200% Growth.

Meanwhile, Aurora Cannabis stock fell 6.6%, Cronos Group fell 2.3%, and Canopy Growth gained 0.22%. The Horizons Marijuana Life Sciences Index ETF (HMMJ), which tracks the North American cannabis industry, fell 2.2% on Monday.

Green Growth Brands will host a conference call today at 8:30 AM ET.

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