GrowGeneration, the largest chain of specialty hydroponic and organic garden centers, recently shared its second quarter financial results from 2021. The company’s revenue has boomed compared to 2020.
Part of that growth stems from its private label products, particularly in the areas of organic nutrients and soils and hydroponic equipment, that went from only representing 1% of the company's sales to 7%.
Darren Lampert, GrowGeneration co-founder and CEO, said private label was one strategy of many implemented several quarters ago that are now positively impacting margins. "We increased our inventory positions across all key product categories to get ahead of price increases, as well as expanded more private label purchases. Our private label and proprietary products now account for approximately 7% of our overall sales.”
The report comes after a busy July for GrowGeneration, acquiring hydroponic garden stores and suppliers in California, Oregon, and Michigan. GrowGeneration owns and operates specialty retail hydroponic and organic gardening centers in several states across the country, currently owning 58.
From the second quarter of 2020 to the second quarter of 2021, the company's revenue increased 190% from $43.5 million to $125.9 million, a record high for the company. Same-store sales at 24 locations open for the same period in 2020 and 2021 were $62.1 million in second quarter 2021 versus $38.9 million for the same period last year, a 60% increase year over year.
Gross profit margin for second quarter 2021 was 28.4% compared to 26.7% in the same quarter last year, an increase of 170 basis points. Income before tax was $9.6 million for the second quarter 2021 versus $2.7 million for the same period last year.
GrowGeneration acquired two hydroponics companies during the second quarter of 2021, Downriver Hydroponics in Michigan, and The Harvest Company in Northern California.
"The GrowGen team delivered an exceptionally strong second quarter, with revenues up 190% compared to the same period last year,” said Lampert, adding that GrowGen will continue to “focus on building out a world-class supply chain, with omni-channel functionality, that will allow the company to continue to deliver 'just in time' inventory for all types of growers and cultivators."