The Greenrose Holding Company Inc. (OTCQX:GNRS) (OTC:GNRSW) released financial and operating results for the second quarter ended June 30, 2022, revealing revenue, net of discounts increased 40% to $9.2 million compared to $6.6 million in the prior year quarter.
The increase in revenue primarily reflects incremental revenue contributions from True Harvest compared to the prior year period, which only included contributions from Theraplant. Theraplant’s second quarter revenues decreased year-over year as a result of sustained demand headwinds in Connecticut’s medical market, as well as increased competition and impacts from the state’s illicit market. True Harvest’s second quarter revenue performance continues to reflect the impacts of production disruptions resulting from the facility’s recent expansion.
Q2 2022 Financial Highlights
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Gross profit was $2.9 million compared to $4.4 million in the prior year quarter.
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Net loss was $10.3 million compared to net income of $3.3 million in the prior year quarter.
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Adjusted EBITDA was $3.1 million compared to $4.6 million in the prior year quarter.
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Cash and cash equivalents combined with restricted cash was $2.7 million at June 30, 2022 compared to $9.1 million at December 31, 2021.
“During the second quarter, we continued to strengthen our operational foundation in both Connecticut and Arizona,” stated Mickey Harley, CEO of Greenrose. “Our revenues increased 40% year-over-year due to incremental contributions from True Harvest, where we substantially reduced our inventory backlog and generated sequential month-over-month sales improvements. At Theraplant, we continued to navigate demand headwinds within the state’s current medical market, but worked to further activate our increased cultivation capacity and build inventory ahead of Connecticut’s expected commencement of recreational cannabis sales.”
“While we continued to incur higher costs associated with ramping our expanded cultivation capacity at both True Harvest and Theraplant, we believe this work improves our positioning for improving our operations in Arizona and preparing for Connecticut’s forthcoming recreational market, respectively. As we progress into the second half of 2022, we remain focused on leveraging our existing production efficiencies to deepen and expand our presence in our existing state markets,” continued Harley.
2022 Financial Outlook Update
Due to regulatory delays surrounding the expected timing of Connecticut’s recreational cannabis market, Greenrose is suspending its previously stated full year 2022 guidance. The company expects to re-evaluate and provide further updates on its 2022 outlook as regulatory visibility improves.
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