Private label helps lead GrowGen to a successful 2021

The hydroponic retailer announced a successful fiscal 2021, with private label sales accounting for 7.5% of all sales in Q4.

Zachary Russell

3/4/2022

Hydroponic chain and private label retailer GrowGeneration (GrowGen) has released its Q4 and full-year 2021 financial results, showing a major boost in business compared to 2020.

Last year, GrowGen stayed busy with new appointments, acquisitions and expansions, while seeing strong private label growth. The company is the largest chain of hydroponic and organic garden centers, with 63 store locations across 13 states.

"The GrowGen team delivered a strong year despite the persistently difficult macro environment that is impacting the entire cannabis industry,” said Darren Lampert, GrowGen co-founder and CEO. “In addition to acquired locations, we opened two greenfield locations in the Los Angeles metro area in 2021, and for next year, we are looking to open 15 to 20 locations across new and existing states."

In Q4, net revenues increased 46% to $90.6 million compared to $61.9 million for the same period last year. Same-store sales at 26 locations open for the same period in 2020 and 2021 were $40.3 million, compared to $46.0 million in the same period last year, representing a 12.3% year-over-year decline.

Private label and proprietary brand sales, inclusive of Power Si and Char Coir, were 7.5% of revenue in the fourth quarter of 2021 compared to 0.5% in the same period last year, while eCommerce revenue, inclusive of Agron revenue, was $7.7 million, compared to $3.2 million in the same period last year. Gross profit margin for Q4 2021 was 25.5%, compared to 25.8% in Q4 2020, a decrease of 30 basis points.

For the fiscal year ended Dec. 31, 2021, net revenue was $422.5 million, compared to $193.4 million for the fiscal year 2020, an increase of $229.1 million or 118.5%. Gross profit margin was 28.0% compared to 26.4% for the year before, an increase of 160 basis points. GAAP net income was $12.8 million, compared to net income of $5.3 million for 2020, and adjusted EBITDA was $34.5 million, compared to $18.9 million for fiscal 2020, an increase of $15.6 million or 82%.

Related Topics