GGBXF stock is still dropping as of December 11, 2019.
On November 25, 2019, Green Growth Brands Inc. (GGB or the Company) (CSE: GGB) (OTCQB: GGBXF) reported its results for the thirteen-week period ended September 28, 2019. Revenues for the period totaled $12.7M.
Total first quarter fiscal 2020 revenues increased 77% quarter-over-quarter to $12.7 million. The company says it is well-positioned for upcoming holiday season with network of 193 CBD shops.
“As we approach the holiday shopping season, we are confident in our growth trajectory,” said Peter Horvath, CEO of Green Growth Brands. “We are proud of the topline growth we accomplished in Q1 and are extremely pleased with our current results, which are an indication of future growth. In fact, the four weeks of fiscal November, retail CBD sales were two-thirds of our total CBD sales reported in all of the thirteen weeks of first quarter fiscal 2020, which we are reporting today. This topline growth is reflective of our shift from investing in the foundation of our CBD business to focusing on its execution.
“In a very short-time we have grown a meaningful CBD footprint. We believe our products, network of shops, rapidly growing web business and wholesale relationships position us as a leader in the industry. In the coming quarters we look-forward to reporting similar trends and results for our MSO segment of the business. As we begin to reach scale our consumer and operations expertise will be clearly reflected, not only in the customer experiences we create and the loyalty we drive, but also in our financials as we work towards profitability.”
First Quarter Fiscal 2020 Highlights
Total revenue for the period was $12.7 million, a sequential increase of 77% over the prior quarter.
Pro forma revenues for the quarter were $15.3 million, reflecting a full quarter of revenue from The+Source Henderson, which was acquired on August 28, 2019.
MSO revenues for the quarter were $7.6M, a sequential increase of 38% over the prior quarter, primarily driven by the acquisition of The+Source Henderson.
The two Nevada-based The+Source dispensaries continue to generate annualized revenue of nearly $15,000 per selling square foot. A best-in-class figure in the cannabis industry and in retail overall.
CBD revenue for the quarter was $5.1 million, a sequential increase of 201% over the prior quarter. Growth was primarily driven by additional mall-based shop openings, growth in wholesale, and increased overall brand awareness. The Company expects to achieve over $10 million in CBD revenues in second quarter fiscal 2020.
The Company opened 81 mall-based CBD shops during the quarter, bringing the total number of shops open at quarter’s end to 139 in 34 states. The Company currently operates 193 shops.
The Company began filling American Eagle Outfitter’s white label order for ‘Mood’ during the quarter. Performance indications are strong, and the Company expects to continue partnering with American Eagle.