Successful Launch in New Jersey
The first full quarter of sales in New Jersey showed promising results. The company is operating at 25% of its total capacity, with expectations to ramp up to full sell-through of Phase 1 by the end of Q2 or early Q3. Phase 1 production capacity is about 500 to 600 pounds a month, with Phase 2 expected to double this capacity.
Strong Operational Performance Despite Pricing Pressure
Despite a 20% decline in pricing in Oregon and Michigan, Grown Rogue maintained over 30% EBITDA margins. Yields were up, and cost of production was down in both states, showcasing strong operational performance.
Expansion and Future Growth
Plans for growth include Phase 2 expansion in New Jersey and new market entry into Illinois. Grown Rogue expects revenue to grow at a minimum of 30% a year, with profits well exceeding that, driven by new market operations.
Strong Team Commitment and Culture
The company's leadership and national directors are deeply committed, relocating temporarily to support new market expansions, which reflects a strong team culture and dedication to operational success.
Balance Sheet Strength
The company's balance sheet is reported to be stronger than a year ago, supporting its disciplined approach to growth and expansion.