GrowGeneration Issues 2024 Year End Letter To Shareholders and Provides Business Update Including Preliminary Full Year 2024 Results
GrowGeneration (NASDAQ: GRWG) reports significant transformation in 2024, focusing on B2B operations and proprietary brand growth. The company achieved over 30% of cultivation and gardening revenue from proprietary products in Q4 2024, targeting 35% by end of 2025.
Preliminary 2024 results show anticipated net sales of $188-190 million, proprietary brand sales of $39-40 million, and storage solutions sales of $25-26 million. The company maintains a debt-free balance sheet with over $56 million in cash and equivalents.
Key developments include launching a new B2B e-commerce platform, streamlining operations to 31 stores and two distribution centers, and implementing cost-reduction measures expected to save $12 million annually. The company's focus on proprietary brands like Char Coir Coco, Drip Hydro nutrients, and Ion LED lighting solutions aims to drive higher margins and recurring revenue.
GrowGeneration (NASDAQ: GRWG) riporta una significativa trasformazione nel 2024, concentrandosi sulle operazioni B2B e sulla crescita del marchio proprietario. L'azienda ha ottenuto oltre il 30% del fatturato nel settore della coltivazione e del giardinaggio da prodotti di proprietà nel Q4 2024, puntando al 35% entro la fine del 2025.
I risultati preliminari del 2024 mostrano vendite nette previste tra $188-190 milioni, vendite del marchio proprietario tra $39-40 milioni, e vendite di soluzioni di stoccaggio comprese tra $25-26 milioni. L'azienda mantiene un bilancio senza debiti con oltre $56 milioni in contante e equivalenti.
Tra i principali sviluppi vi è il lancio di una nuova piattaforma di commercio elettronico B2B, il razionalizzazione delle operazioni a 31 negozi e due centri di distribuzione, e l'attuazione di misure di riduzione dei costi che si prevede possano far risparmiare annualmente $12 milioni. Il focus dell'azienda sui marchi proprietari come Char Coir Coco, Drip Hydro nutrienti e soluzioni di illuminazione Ion LED mira a generare margini più elevati e ricavi ricorrenti.
GrowGeneration (NASDAQ: GRWG) informa sobre una transformación significativa en 2024, enfocándose en operaciones B2B y el crecimiento de su marca propietaria. La compañía logró más del 30% de sus ingresos por cultivos y jardinería a partir de productos proprios en el cuarto trimestre de 2024, con el objetivo de alcanzar el 35% para finales de 2025.
Los resultados preliminares de 2024 muestran ventas netas anticipadas de $188-190 millones, ventas de la marca propietaria de $39-40 millones y ventas de soluciones de almacenamiento de $25-26 millones. La empresa mantiene un balance libre de deudas con más de $56 millones en efectivo y equivalentes.
Entre los desarrollos clave se incluye el lanzamiento de una nueva plataforma de comercio electrónico B2B, la racionalización de operaciones a 31 tiendas y dos centros de distribución, y la implementación de medidas de reducción de costos que se espera ahorren $12 millones anualmente. El enfoque de la compañía en marcas propietarias como Char Coir Coco, Drip Hydro nutrientes y soluciones de iluminación Ion LED busca generar márgenes más altos e ingresos recurrentes.
GrowGeneration (NASDAQ: GRWG)은 2024년에 B2B 운영과 독점 브랜드 성장에 중점을 두고 상당한 변화를 보고합니다. 이 회사는 2024년 4분기에 독점 제품으로부터 재배 및 원예 수익의 30% 이상을 달성했으며, 2025년 말까지 35%를 목표로 하고 있습니다.
2024년의 초기 결과는 예상 순매출이 1억 8,800만~1억 9,000만 달러, 독점 브랜드 판매가 3천9백만~4천만 달러, 저장 솔루션 판매가 2천5백만~2천6백만 달러에 이를 것으로 보입니다. 이 회사는 5천6백만 달러 이상의 현금과 현금성 자산을 보유하고 있습니다.
주요 개발 사항으로는 새로운 B2B 전자상거래 플랫폼 출시, 31개 매장과 2개의 유통 센터로 운영 간소화, 연간 1천2백만 달러를 절감할 것으로 예상되는 비용 절감 조치 시행이 포함됩니다. Char Coir Coco, Drip Hydro 영양제 및 Ion LED 조명 솔루션과 같은 독점 브랜드에 대한 회사의 초점은 더 높은 마진과 반복 수익을 얻는 것을 목표로 합니다.
GrowGeneration (NASDAQ: GRWG) fait état d'une transformation significative en 2024, en se concentrant sur les opérations B2B et la croissance de sa marque propre. L'entreprise a réalisé plus de 30 % de son chiffre d'affaires dans la culture et le jardinage grâce à des produits exclusifs au quatrième trimestre 2024, visant 35 % d'ici la fin de 2025.
Les résultats préliminaires de 2024 montrent des ventes nettes anticipées de 188 à 190 millions de dollars, des ventes de marques propres de 39 à 40 millions de dollars et des ventes de solutions de stockage de 25 à 26 millions de dollars. L'entreprise maintient un bilan sans dette avec plus de 56 millions de dollars en liquidités et équivalents.
Les développements clés comprennent le lancement d'une nouvelle plateforme de commerce électronique B2B, la rationalisation des opérations à 31 magasins et deux centres de distribution, ainsi que la mise en œuvre de mesures de réduction des coûts qui devraient permettre d'économiser 12 millions de dollars par an. L'accent mis par l'entreprise sur des marques propriétaires comme Char Coir Coco, les nutriments Drip Hydro et les solutions d'éclairage Ion LED vise à générer des marges plus élevées et des revenus récurrents.
GrowGeneration (NASDAQ: GRWG) berichtet über eine signifikante Transformation im Jahr 2024, mit dem Fokus auf B2B-Betrieb und Wachstum der eigenen Marke. Das Unternehmen erzielte im vierten Quartal 2024 über 30% des Umsatzes im Bereich Anbau und Gartenarbeit aus eigenen Produkten und strebt an, bis Ende 2025 35% zu erreichen.
Die vorläufigen Ergebnisse für 2024 zeigen einen erwarteten Nettoumsatz von 188 bis 190 Millionen US-Dollar, einen Umsatz aus eigenen Marken von 39 bis 40 Millionen US-Dollar und einen Umsatz aus Lagerlösungen von 25 bis 26 Millionen US-Dollar. Das Unternehmen hält eine schuldenfreie Bilanz mit über 56 Millionen US-Dollar in Bargeld und Baräquivalenten.
Wichtige Entwicklungen umfassen den Start einer neuen B2B-E-Commerce-Plattform, die Straffung der Betriebe auf 31 Geschäfte und zwei Vertriebszentren sowie die Umsetzung von Kostensenkungsmaßnahmen, die voraussichtlich jährlich 12 Millionen US-Dollar einsparen werden. Der Fokus des Unternehmens auf eigene Marken wie Char Coir Coco, Drip Hydro Nährstoffe und Ion LED-Beleuchtungslösungen zielt darauf ab, höhere Margen und wiederkehrende Einnahmen zu erzielen.
- Debt-free balance sheet with over $56 million in cash position
- Expected annual cost savings of $12 million from operational improvements
- Positive same-store sales for full year 2024
- 30% of Q4 2024 cultivation revenue from higher-margin proprietary products
- Successfully streamlined operations from previous store count to 31 locations
- Significant reduction in retail footprint through store closures
- Ongoing restructuring and transformation costs
Insights
GrowGeneration's 2024 transformation reveals a compelling strategic pivot that positions the company for improved profitability in 2025. The shift to proprietary brands, reaching
The company's robust balance sheet, featuring zero debt and
Three key strategic initiatives merit attention:
- The B2B e-commerce platform launch reduces operational overhead while improving customer retention through streamlined ordering processes
- The
$12M annual cost reduction program significantly lowers the breakeven point, enhancing operational leverage - The expansion into big-box garden centers through Char Coir products opens a massive TAM beyond traditional hydroponic markets
The streamlined network of 31 stores represents an optimized footprint focused on high-demand regions, suggesting improved per-store economics. The projected FY2024 revenue of
Includes Key 2024 Milestones and Outlook for 2025
Dear Fellow Shareholders,
2024 was a year of significant transformation and progress for GrowGeneration. We accomplished a great deal and on behalf of our executive team and Board of Directors, I want to express our sincere gratitude to our shareholders for their loyalty and support as we’ve executed on our strategic restructuring plan to drive revenue growth, improve margins, and build a more efficient, profitable company.
A Year of Transformation
As we embark on a new year, I am excited to share the progress GrowGeneration has made in transforming into a product-driven organization with a business-to-business (B2B) customer focus. As part of this, we have been working to increase proprietary brand sales as a percentage of Cultivation and Gardening net sales. As a result, over
Our proprietary brands such as Char Coir Coco, Drip Hydro nutrients and our Ion LED lighting solutions have been leading the charge. These innovative products, which are designed to reduce costs, improve yields, and deliver sustainability, have been widely adopted by some of the largest cultivators in the
Another key focus for us in 2024 was a digital transformation of sales throughout our entire organization with a B2B customer focus. Our new B2B e-commerce platform was launched during the fourth quarter of 2024 and customer feedback to date has been extremely positive. We intend to continue migrating transaction activity from our brick-and-mortar stores to our new digital platform. To complement this digital strategy, we have also been implementing a new fulfillment strategy, where commercial customers will shop online and have access to products at existing warehouse-style stores for convenient pickup.
During 2024, we further streamlined operations throughout our entire organization. We met our store closure target before year end and ahead of schedule, and maintained our focus on improving efficiencies, and reducing store and other operating expenses. We now have 31 operational stores and two regional distribution centers. At the same time, we have taken a number of actions to improve our operations, including reorganizing our sales, marketing, and administrative activities, rationalizing inventory, revisiting our strategic vendor relationships, and improving recovery of freight expense. All of these actions combined are expected to reduce expenses by approximately
Financial Strength and Momentum
In light of these achievements, I’m happy to deliver this update on our preliminary and unaudited 2024 results as well as other highlights of our progress. For the full year 2024, the Company anticipates:
-
Total 2024 net sales in the range of
$188 million $190 million -
Total 2024 proprietary brand sales in the range of
$39 million $40 million - Positive same store sales for full year 2024;
-
Total 2024 storage solutions sales in the range of
$25 million $26 million -
Ending the year with a debt-free balance sheet and a strong cash, cash equivalents and marketable securities position of more than
$56 million
With the improvements made to our cost structure and store footprint, we are well-positioned for profitability in 2025. We’ve streamlined operations and increased efficiency, allowing us to focus on recurring revenue from consumables, including our industry-leading Drip Hydro powders and sustainable Char Coir bio pots. Additionally, our margins are improving steadily as our product mix shifts further toward higher-margin brands, supported by reduced overhead and optimized store locations.
Looking Ahead - Driving Innovation and Market Expansion
With everything we accomplished last year, 2025 is poised to be a year of proprietary brand growth and innovation for GrowGeneration as we continue to increase private brands sales, solidify our operational efficiencies and expand strategically. Hydroponics and consumable products remain at the core of our business, with Drip Hydro’s powders providing the lowest cost per gallon of nutrients without sacrificing quality. Complementing this, our Char Coir bio pots, coins, and other coco-based products are helping us penetrate the big-box garden center market while promoting sustainability. Further, our Ion LED lighting solutions and investments in under-canopy and energy-efficient technology are helping growers reduce costs while increasing yields.
With our 31 operational stores located in high-demand regions and two regional distribution centers, GrowGeneration has built a scalable platform for both B2C and B2B growth. Through partnerships with Amazon and other wholesale partners, we are also extending our reach into the home gardening and greenhouse markets, opening exciting new revenue streams for the Company.
With a new presidential administration in
In addition to driving organic growth, we also continue to identify opportunities to accelerate our growth through strategic, targeted M&A. With a debt-free balance sheet and a strong cash position, we remain focused on acquiring businesses that complement our product portfolio and expand our market share. Every acquisition is a strategic step toward becoming the dominant supplier of innovative, sustainable, and cost-saving solutions for growers nationwide.
In closing, GrowGeneration’s evolution has been bold, and our efforts are yielding results. With restructuring largely behind us, an improved cost structure, and a focus on higher-margin products, 2025 is set to be a pivotal year of growth, profitability, and innovation. Our transformation into a product-driven B2B organization positions us not only to lead in the hydroponics and cultivation sectors but also to grow across diverse verticals.
We are confident in the foundation we’ve built and the path forward. On behalf of the entire GrowGeneration team, I thank you for your continued trust and support as we enter this exciting next chapter. I look forward to sharing more exciting news with you in 2025.
Sincerely,
Darren Lampert
Chairman and CEO
GrowGeneration
About GrowGeneration Corp:
GrowGen is a leading developer, marketer, retailer, and distributor of products for both indoor and outdoor hydroponic and organic gardening, as well as customized storage solutions. GrowGen carries and sells thousands of products, such as nutrients, additives, growing media, lighting, environmental control systems, and benching and racking, including proprietary brands such as Char Coir, Drip Hydro, Power Si, Ion lights, The Harvest Company, and more. Incorporated in
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Forward Looking Statements:
This press release may include predictions, estimates or other information that might be considered forward-looking within the meaning of applicable securities laws. While these forward-looking statements represent current judgments, they are subject to risks and uncertainties that could cause actual results to differ materially. You are cautioned not to place undue reliance on these forward-looking statements, which reflect opinions only as of the date of this release. Please keep in mind that the Company does not have an obligation to revise or publicly release the results of any revision to these forward-looking statements in light of new information or future events. When used herein, words such as “look forward,” “expect,” “believe,” “continue,” “building,” or variations of such words and similar expressions are intended to identify forward-looking statements. Factors that could cause actual results to differ materially from those contemplated in any forward-looking statements made by us herein are often discussed in filings made with the United States Securities and Exchange Commission, available at: www.sec.gov, and on the Company’s website, at: www.growgeneration.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250206119240/en/
KCSA Strategic Communications
Philip Carlson
Managing Director
T: 212-896-1233
E: GrowGen@kcsa.com
Source: GrowGeneration Corp.
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