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GrowLife, Inc. Reports 80% Increase in Year-Over-Year Revenue in 2019 Financial Results

GrowLife, Inc. (PHOT)

Summary:

  • GrowLife experienced revenue growth of 80% year-over-year in 2019 as compared to year end 2018, to $8,218k from $4,573k
  • GrowLife increased gross profit over 444% year-over-year in 2019 as compared to year end 2018, to $2,549k from $468k
  • GrowLife increased profit margin to 31% at year-end 2019 from 10.2% at year-end 2018
  • GrowLife announced its strategic move into the CBD-rich hemp clone market, creating expanded revenue opportunities in the new year
  • GrowLife completed strategic financial transactions including a stock reverse increasing access to investment and the retirement of over one-half billion stock warrant shares

KIRKLAND, Wash. — 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 quarter and year ending Dec. 31, 2019, and provided an overview of recent operational highlights. The Company reported continued growth in its revenue, reporting $8,218k for the period ending Dec. 31, 2019, an increase of 80% year-over-year when compared to the same period in 2018. Additionally, with a focus on increasing profitability, the company reported $2,549k in gross profit for the period ending Dec. 31, 2019, an increase of $2.1m year-over-year when compared to the same period in 2018. This increase can be attributed to the high-margins provided by the Company’s most recent acquisition EZ-CLONE, where overall gross margins for the Company increased to 31% for the period ending Dec. 31, 2019, up from just 10% in the previous year in the same period.

“Our team, along with our customers and partners, put it all together to make 2019 a great year. An 80% revenue growth is exciting and our second best year ever. However, the real story is the record-setting gross margins of $2.5 million.  It would take all of our gross margins combined over the past five years to surpass what we generated in just this last year alone… and we are just getting started with clones, which is another high-margin business,” said GrowLife CEO Marco Hegyi.  “When we kicked off 2019, we focused our management team on expanding our EZ-CLONE business, which is what drove up our gross margins. In 2020, we will continue to drive EZ-CLONE while entering the CBD-rich hemp clone space with equally strong gross margins.”

Hegyi continued, “In 2019 we did a great deal of work in getting ready to build on our partnerships, offerings and sales programs, preparing us to enter the rapidly expanding CBD market. Today, with our exclusive genetic and propagation partners, we have built the infrastructure to supply millions of high-quality, CBD-rich hemp clones among the key states, even faster than we imagined. We are not only continuing to supply industry leading propagation equipment with EZ-CLONE but also offering the best genetic clones available. Yes, 2019 was a great year for GrowLife.”

Operation Highlights for 2019 Included:

Executed on a Solid Fiscal Strategy

Entered New Markets in Hemp and Expanded Product Offering

Expanded Intellectual Property Portfolio

Participated in Trade Shows and Speaking Engagements

YEAR-END 2019 FINANCIAL RESULTS

Net Revenue: For the period ending Dec. 31, 2019, GrowLife showed net revenue of $8,217,562, as compared to revenue of $4,573,461 for the period that ended December 31, 2018 – an increase of 79.7%.

Gross Profit: For the period ending Dec. 31, 2019, GrowLife had Gross Profit of $2,549,127 as compared to $468,289 for the period ending Dec. 31, 2018 – an increase of 444%.

Net Loss: For the period ending Dec. 31, 2019, GrowLife had a Net Loss of $7,285,445 as compared to $11,473,136 for the period ending Dec. 31, 2018.

Cash Flow used in Operations: For the period ending Dec. 31, 2019, GrowLife had Cash Flow Used in Operations of $2,909,811 as compared to $3,854,505 for the year ending Dec. 31, 2018.


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