GrowLife Continues to Increase Revenue By 141% Year-Over-Year Quarterly Growth
Third Quarter Results show $2,299K revenue over last year’s $954K
Summary:
— GrowLife reports revenue of $6.7 million for the nine months ending as
compared to revenue of $2.9 million for the same period in 2018, an
increase of 134%
— GrowLife reports gross profit for the nine months ending on September 30, 2019 of $2.2 million, compared to $243K in the same period last year,
representing an 803% increase
— GrowLife continued focus on improving profitability in Q3 of 2019, which
resulted in gross profit increases from 5.8% to 32.4% for the same period
last year, an increase of 463%
— GrowLife continues to experience growth due to the October 2018
acquisition and successful integration of EZ-CLONE Enterprises, Inc. and
increased demand for cloning products for use in hemp CBD products.
KIRKLAND, Wash., Nov. 13, 2019 (GLOBE NEWSWIRE) — GrowLife, Inc. (OTC: PHOT) (“GrowLife” or the “Company”), one of the nation’s most recognized indoor cultivation product and service providers, today announced financial results for the period ending September 30, 2019. The company experienced growth over last year, showing an 141% increase in revenue over Q3 2018, from $1.0 million to over $2.3 million in Q3 2019. Additionally, the company continued to make significant progress in improving profitability, reporting $746,000 in gross profit for the three month period ending September 30, 2019, a 1,256% increase over the same period last year. This was due to a major shift in profit margins, which increased to 32.4% in Q3 2019 compared to just 5.8% in Q3 2018.
GrowLife CEO Marco Hegyi stated “In our toughest seasonal quarter, I see Q3 as a good quarter for GrowLife for three reasons: First, we achieved our highest revenues of the year so far by growing over 141% over last year same period. The summer quarter is usually challenging for GrowLife but demand for both GrowLife and EZ CLONE products remains strong. Second, gross margins remain strong at over 32.4% where in the three quarters of 2019 we generated almost three times as much gross margin dollars as we have in all of the last three years combined. We are not stopping there. We eliminated low performing business areas such as retail hydroponics and flooring, this is expected to and lower our monthly spending by up to $100,000 per month. And three, we are utilizing the increased gross margin and savings to invest in our announced plans for 2020 of providing hemp CBD clones under the EZ CLONE brand are intended to serve the high-demand CBD market. We believe this may lead to even greater growth for the Company.”
THIRD QUARTER 2019 FINANCIAL RESULTS
Net Revenue: For the period ending September 30, 2019, GrowLife showed net revenue of $2.3 million as compared to revenue of $1.0 million for the period that ended September 30, 2018, an increase of 141%.
Gross Profit: For the period ending September 30, 2019, GrowLife showed gross profit of $746,000 as compared to revenue of $55,000 for the period that ended September 30, 2018, an increase of 1,256%.
Gross Profit Margin: Gross Profit Margin, expressed as a percentage of the difference between revenue and cost of goods sold divided by revenue, was 32.4% for the period ending on September 30, 2019, compared to 5.8% for the period ending June 20, 2018, an increase of 463%.
