Grown Rogue Reports Fourth Quarter and Annual 2024 Results
MEDFORD, Ore., March 31, 2025 /CNW/ - Grown Rogue International Inc. ("Grown Rogue" or the "Company") (CSE:GRIN) (OTC:GRUSF), a craft cannabis company born from the amazing terroir of Oregon's Rogue Valley, is pleased to report its fourth quarter and full year results ended December 31, 2024. The Company changed its fiscal year-end from October to December during 2024, affecting year-over-year comparison periods, including making year-over-year quarterly comparisons less relevant. All financial information is provided in U.S. dollars unless otherwise indicated.
2024 Operational and Financial Highlights:
Revenue of $27.0M compared to $23.4M in the year ended October 31, 2023, an increase of 16%
Adjusted EBITDA of $9.7M compared to $7.6M in the year ended October 31, 2023, an increase of 27%
Adjusted EBITDA margin of 35.8% compared to 32.7% in the year ended October 31, 2023
Grown Rogue Received Licensing Approval in New Jersey and Closed Option 1 to Acquire 44% of ABCO Garden State, LLC ("ABCO"), with agreements in place to own up to 70%, pending regulatory approval
Commenced sales of Grown Rogue flower and pre-rolls in New Jersey in December and, as of mid-March, are selling into approximately half of the 205 dispensaries in the state
Increased ownership of Michigan operations from 60% to 80%
Convertible lenders voluntarily converted $3.1M of outstanding convertible debentures not due until 2027
Announced the termination of the advisory agreement with Vireo Growth Inc. (formerly Goodness Growth Holdings, Inc.)
Subsequent to year-end, the Company appointed Andrew Marchington as Chief Financial Officer and Josh Rosen as Chief Strategy Officer
Subsequent to year-end Nile, the Company's affiliated dispensary located in West New York, New Jersey, opened in February 2025, with its grand opening event planned for Saturday, March 29
Subsequent to year-end, the Company closed a US$7.0M credit facility at ~9% interest
2024 Fourth Quarter Financial Highlights:
Revenue of $5.7M and adjusted EBITDA of $2.6M
Adjusted EBITDA margin of 46.9%
Management Commentary
"This was another productive year for Grown Rogue with growth in both revenue and aEBITDA showing the continued execution by our team in competitive markets against a backdrop of price compression that was most pronounced in the back half of the year. Our core markets of Oregon and Michigan performed well in 2024 with strong market share increases in both markets. Our sales in OR and MI grew 10% and 13%, respectively, while state sales in OR were flat and MI were up 8%, indicating continued strong demand for our flower and pre-roll products. Our state-level EBITDA margins in 2024 were affected by lower pricing, particularly in Oregon, but we remain relentlessly focused on offsetting this competitive environment with strong cost controls, operational efficiencies and yield improvements. We continue to see pricing pressure early in 2025, most significantly in Michigan and we're optimistic that we'll see this pressure subside as we move through the year. Fortunately, our strong execution and resulting margin profile makes us resilient.," said Obie Strickler, CEO of Grown Rogue.
"I'm so proud of everyone on the Grown Rogue team for both maintaining the focus on continuous improvement in our existing operations and simultaneously delivering against an aggressive go-to-market timeline in New Jersey. Augmenting our team as we grow, while retaining and growing our core talent, is the linchpin of our success. I believe we're doing a remarkable job of executing against the things we control. Our near-term focus remains on continuous operational improvements, construction of phase two at the New Jersey facility, the buildout of our facility in Illinois, and our ongoing measured pursuit of new markets. Our recently announced credit facility supports these growth initiatives on attractive terms by industry standards. We continue to believe that high-quality, low-cost cannabis cultivation, that delights consumers, is a protectable moat when done at the proper scale," continued Mr. Strickler.
"I want to personally thank all our customers, the entire Grown Rogue team, and our supportive partners and shareholders for each doing their part to help Grown Rogue achieve our goal of becoming a nationally recognized craft flower company in the U.S. I look forward to providing future updates, most notably as we actively increase our penetration in the New Jersey market."
Oregon Market Highlights ($USD Millions)
Oregon
FY 2024
FY 2023*
+/- %
Revenue
12.1
11.0
+10 %
aEBITDA
3.6
4.4
-18 %
aEBITDA Margin %
30.0 %
40.1 %
-1010 bps
* FY 2023 data is from November 2022 to October 2023
Michigan Market Highlights ($USD Millions)
Michigan
FY 2024
FY 2023*
+/- %
Revenue
12.9
11.4
+13 %
aEBITDA
5.8
5.3
+8 %
aEBITDA Margin %
44.5 %
46.7 %
-220 bps
* FY 2023 data is from November 2022 to October 2023
Michigan operations are through Golden Harvests, LLC.
Financial Statements and aEBITDA reconciliation
Consolidated Statements of Financial Position
December 31, 2024
December 31, 2023
October 31, 2023
$
$
$
ASSETS
Current assets
Cash and cash equivalents (Note 18)
4,682,221
6,804,579
8,858,247
Accounts receivable (Note 18)
1,596,912
1,642,990
2,109,424
Biological assets (Note 3)
1,554,622
1,723,342
1,566,822
Inventory (Note 4)
4,769,776
5,021,290
4,494,257
Prepaid expenses and other assets
864,009
420,336
392,787
Notes receivable (Note 6.3)
7,189,635
-
-
Total current assets
20,657,175
15,612,537
17,421,537
Warrants asset (Note 13.2)
4,855,795
8,820,897
8,753,266
Other Investments (Note 6.1 and 6.2)
1,810,363
-
-
Notes receivable (Notes 6.3)
2,613,969
2,449,122
1,430,526
Property and equipment (Note 8)
11,870,220
1,761,382
1,361,366
Intangible assets and goodwill (Note 9)
1,257,668
725,668
725,668
Deferred tax asset (Note 20)
250,620
246,294
470,358
TOTAL ASSETS
43,315,810
29,615,900
30,162,721
LIABILITIES
Current liabilities
Accounts payable and accrued liabilities
2,107,619
1,358,962
2,359,750
Current portion of lease liabilities (Note 7)
736,453
925,976
824,271
Current portion of long-term debt (Note 10)
227,679
780,358
1,285,604
Current portion of convertible debentures (Note 11)
1,945,226
-
-
Current portion of business acquisition consideration payable (Note 5)
536,881
360,000
360,000
Derivative liability (Notes 11.1.1, 11.2 and 11.2.1)
12,504,175
7,471,519
7,808,500
Income tax payable (Note 20)
1,907,177
873,388
366,056
Total current liabilities
19,965,210
11,770,203
13,004,181
Lease liabilities (Note 7)
4,475,490
1,972,082
2,094,412
Long-term debt (Note 10)
1,001,681
82,346
102,913
Business acquisition consideration payable (Note 5)
1,693,540
-
-
Convertible debentures
-
2,459,924
2,412,762
Other non-current liabilities (Note 20)
269,883
-
-
TOTAL LIABILITIES
27,405,804
16,284,555
17,614,268
EQUITY
Share capital (Note 12)
38,499,491
24,593,422
24,593,422
Contributed surplus (Notes 13 and 14)
9,025,541
8,186,297
8,081,938
Accumulated other comprehensive loss
(125,930)
(108,069)
(114,175)
Accumulated deficit
(32,847,334)
(20,353,629)
(20,996,449)
Equity attributable to shareholders
14,551,768
12,318,021
11,564,736
Non-controlling interests (Note 23)
1,358,238
1,013,324
983,717
TOTAL EQUITY
15,910,006
13,331,345
12,548,453
TOTAL LIABILITIES AND EQUITY
43,315,810
29,615,900
30,162,721
Consolidated Statements of Comprehensive Income (Loss)
Year ended
Two months ended
Year ended
December 31, 2024
December 31, 2023
October 31, 2023
$
$
$
Revenue
Product sales (Note 2.1.6.1)
25,029,634
3,542,037
22,424,169
Service revenue (Note 2.1.6.2)
1,987,631
96,050
929,016
Total revenue
27,017,265
3,638,087
23,353,185
Cost of goods sold
Cost of finished cannabis inventory sold
(12,827,041)
(1,404,323)
(11,155,676)
Costs of service revenue
(206,669)
(89,210)
(308,641)
Gross profit, excluding fair value items
13,937,355
2,144,554
11,888,868
https://www.benzinga.com/pressreleases/25/03/n44576103/grown-rogue-reports-fourth-quarter-and-annual-2024-results
