KIRKLAND, Wash. , Aug. 12, 2019 (GLOBE NEWSWIRE) -- GrowLife, Inc. (OTC: PHOT) (“GrowLife” or the “Company”), one of the nation’s most recognized indoor cultivation product and service providers, today announced financial results for the period ending June 30, 2019, and provided an overview of recent operational highlights from that quarter and the first half of 2019. The company experienced surging growth over last year, showing an 82% increase in revenue over Q2 2018, from $1.2 million to over $2.2 million in Q2 2019. Additionally, the company continued to make significant progress towards profitability, reporting $1.4m in gross profit for the six month period ending June 30, 2019, a 669% increase over the same period last year. This was due to a major shift in profit margins, which increased to 31% in Q2 2019 compared to just 9% in Q2 2019.
“Beyond almost triple-digit revenue growth and almost surpassing last year's revenue in just the first half of this year, I could not be more proud of the team’s performance that led to an increase in our gross profit of over 600% year-over-year,” said GrowLife CEO Marco Hegyi. “As we continue to shift from a commodity business to a full-scale manufacturer of the industry’s leading cloning solution, our margins continue to increase and we continue to focus on profitability. As the cannabis industry, and more specifically the hemp-CBD market continues to experience explosive growth across the globe, GrowLife is extremely well-positioned to take advantage of this market opportunity through our innovative cloning product offering. This is illustrated in the fact that our revenue for the first six months of this year represents nearly all revenue generated in 2018.”
“As we look to bring further innovation in cultivation technologies, we utilized this quarter to continue to invest and build out manufacturing capacity in order to meet our increasing backlog of orders as well as the further growing demand for the EZ-CLONE product line. We are extremely confident that through our strategic investment in EZ CLONE, we have positioned ourselves very well to capitalize on these expanding market opportunities. Where EZ CLONE was able to create a quality product with steady growth, GrowLife has propelled it into an international brand being utilized by some of the largest grow operations in the world.”
SECOND QUARTER 2019 FINANCIAL RESULTS
Net Revenue: For the period ending June 30, 2019, GrowLife showed net revenue of $2.2 million as compared to revenue of $1.2 million for the period that ended June 30, 2018, an increase of 82%.
Gross Profit: For the period ending June 30, 2019, GrowLife showed gross profit of $675,773 as compared to revenue of $111,481 for the period that ended June 30, 2018, an increase of 506%.
Gross Profit Margin: Gross Profit Margin, expressed as a percentage of the difference between revenue and cost of goods sold divided by revenue, was 30.71% for the period ending on June 30, 2019, compared to 9.23% for the period ending June 20, 2018, an increase of 232%.
SECOND QUARTER 2019 OPERATIONAL HIGHLIGHTS
During Q2 2019, GrowLife, Inc. achieved the following milestones and significant events:
FINANCIAL HEALTH OF COMPANY
GrowLife, Inc. Reported Over $2.2M in Revenue in Q1 2019, Up 216% Year-Over-Year, and Increased Gross Margins to Over 34% from 10% Last Year
GrowLife, Inc. Announced Partner Agreement with Cannabis Technology Company to add Spectral Imagery to EZ-CLONE Systems
GrowLife, Inc. Received Patent Issuance on Commercial Cloning System Designed for Hemp and Cannabis Industries
LAUNCH OF NEW PLATFORM
GrowLife, Inc. Launched Hemp Focused EZ-CLONE Platform to Serve as Leading Industrial Hemp Cloning Resource
SALES EVENTS AND TRADESHOWS
GrowLife, Inc. Exhibited at CannaCon in Rapidly Expanding Cultivation Market of Oklahoma
GrowLife, Inc. Presented at the Planet MicroCap Showcase 2019 in Las Vegas
GrowLife, Inc. Showcased its Product at MJBizConNEXT in New Orleans
GrowLife, Inc. Announced Presenting Sponsorship of Inaugural CannGrow Expo in Expanding Oklahoma Market
For more information about GrowLife, please visit the company’s website. Products can be purchased at ShopGrowLife.com. Additional commentary on the company and the industry as a whole can be found on the CEO’s blog.
About GrowLife, Inc.
GrowLife, Inc. (PHOT) aims to become the nation’s largest cultivation service provider for cultivating organics, herbs and greens and plant-based medicines. Our mission is to help make our customers successful. Through a network of local representatives covering the United States and Canada, regional centers and its e-Commerce team, GrowLife provides essential goods and services including media, industry-leading hydroponics and soil, plant nutrients, and thousands more products to specialty grow operations. GrowLife is headquartered in Kirkland, Washington and was founded in 2012.
For more information, The GrowLife 2018 Stockholder Review presentation can be found on the Company’s homepage at www.GrowLifeInc.com.
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FORWARD LOOKING STATEMENT:
This release contains statements that constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements appear in a number of places in this release and include all statements that are not statements of historical fact regarding the intent, belief or current expectations of GrowLife, Inc., its directors or its officers with respect to, among other things: (i) financing plans; (ii) trends affecting its financial condition or results of operations; (iii) growth strategy and operating strategy. The words may, would, will, expect, estimate, can, believe, potential and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond GrowLife, Inc.’s ability to control, and actual results may differ materially from those projected in the forward-looking statements as a result of various factors.