- 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., April 02, 2020 (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 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
- As way to gain wider access to increased investment, GrowLife completed a reverse stock split
- The company continued to clean up it balance sheet through the retirement of a warrant for the issuance of over one-half billion shares
- The company furthered its revenue growth in reporting a 216% increase in revenue year-over-year in Q1 of 2019, coming close to surpassing all revenues generated in 2018 by the six month period ending June 30, 2019, and increasing revenue by 141% year-over-year in Q3 as compared to the previous year
Entered New Markets in Hemp and Expanded Product Offering
- Growlife announced its entrance into the CBD-rich hemp cloning market by early 2020 in which the CEO detailed the market opportunity for the company through an important analysis. The plan was accelerated by the Company’s announcement of entering into exclusive hemp clone distribution agreement
- The company launched a hemp focused EZ-CLONE online platform to serve as a direct-to-farmer sales channel for its commercial cloning units
- Focused on increased profit margins, the Company launched a subscription e-logistics service for its commercial products creating a new, simplified revenue stream
- In a commitment to innovation of its product line, GrowLife entered into a partnership agreement to add industry leading spectral imagery to its renowned commercial product line
Expanded Intellectual Property Portfolio
- GrowLife, through its subsidiary EZ-CLONE, was issued a patent through the USPTO on its commercial cloning system specifically designed for the hemp and cannabis industry
Participated in Trade Shows and Speaking Engagements
- The company continued to attend and speak at renowned conferences and events that further position it as a category leader including:
° Attendance at the industries largest events, MJBizCon International in Toronto, MJBizNEXT in New Orleans, and MJBizCon in Las Vegas.
° CannGrow Expo and CannaCon in Expanding Oklahoma Market
° “Seed to Sale” show in Massachusetts
° Lift & Co. Cannabis Business Expo in Vancouver, Canada, Where Company Supplies Licensed Cannabis Producers with Equipment
° CEO Spoke on the Cannabis Panel Hosted by the Association for Corporate Growth at Y20 Seattle
° Executives attended Spannabis in Spain as the Company targeted European expansion
° CEO and CFO presented to potential investors at the at the Planet MicroCap Showcase 2019 in Las Vegas
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.
About GrowLife, Inc.
GrowLife, Inc. (PHOT) aims to become the nation’s largest cultivation service provider for cultivating organics, herbs and greens and plant-based medicines. Our mission is to help make our customers successful. Through a network of local representatives covering the United States and Canada, regional centers and its e-Commerce team, GrowLife provides essential goods and services including media, industry-leading hydroponics and soil, plant nutrients, and thousands of more products to specialty grow operations. GrowLife is headquartered in Kirkland, Washington and was founded in 2012.
Public Relations Contact:
Cassandra Dowell, 858-264-6600
Investor Relations Contact:
FORWARD LOOKING STATEMENT:
This release contains statements that constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements appear in a number of places in this release and include all statements that are not statements of historical fact regarding the intent, belief or current expectations of GrowLife, Inc., its directors or its officers with respect to, among other things: (i) financing plans; (ii) trends affecting its financial condition or results of operations; (iii) growth strategy and operating strategy. The words may, would, will, expect, estimate, can, believe, potential and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond GrowLife, Inc.’s ability to control, and actual results may differ materially from those projected in the forward-looking statements as a result of various factors.