BOCA RATON–Greenlane Holdings, Inc. (Nasdaq: GNLN), one of the largest sellers of premium cannabis accessories, child-resistant packaging, and specialty vaporization products, today reported financial results for the first quarter ended March 31, 2021.
First Quarter 2021 Highlights
- Greenlane Brands registered back-to-back record quarterly sales records, growing 9.4% from Q4 2020 to a to a now record of $8.5 million for Q1 2021; corresponding to a 18.4% growth over the $7.2 million sales for Q1 2020;
- VIBES performed exceptionally well during the quarter and achieved a quarterly sales revenue record of $2.7 million, a 72.8%, increase for Q1 2021 compared to Q1 2020;
- As of Q1 2021 Greenlane Brands accounted for 25.1% of total revenue compared with 21.3% of total revenue for Q1 2020;
- Q1 2021 core revenue (defined as non-nicotine revenue) grew 11.6% to $32.3 million, compared to $28.9 million in Q1 2020;
- Total revenue increased 0.4% to $34.0 million for Q1 2021, compared to $33.9 million for Q1 2020;
- Gross profit and gross margin were flat at $7.3 million and 21.5% respectively; excluding for the impacts of damaged and obsolete inventory, gross margin would improve to 24.1%, up 260 basis points;
- Acquired Eyce, the world’s leading brand of silicone smoking products; and
- Announced definitive merger agreement between Greenlane and KushCo Holdings, Inc. (“KushCo”) which will establish the leading ancillary cannabis company and house of brands.
“Our first quarter 2021 results demonstrate our continued forward momentum on the heels of a successful 2020,” said Aaron LoCascio, Greenlane’s Chairman and Chief Executive Officer. “This quarter saw significant progress on the execution of one of our key growth strategies, with the acquisition of Eyce, further adding to our portfolio of premium owned brands and the announcement of our impending transformative merger with KushCo. During the quarter we also saw further proof our strategy to focus on growing our portfolio of owned brands is delivering significant results as we transition away from lower-margin revenue categories, with our Greenlane Brands accounting for a quarter of our revenue in the first quarter of 2021. The continued improvement in revenue mix backed by our robust pipeline of potential acquisitions and continued organic growth, combined with our pending merger with KushCo we believe will strongly position us as the leader in the cannabis ancillary space as we drive further revenue growth and profitability improvements in 2021, and continue to build value for both shareholders and customers.”
Forward Looking Statements
Certain matters within this press release are discussed using forward-looking language as specified in the Private Securities Litigation Reform Act of 1995, and, as such, may involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance to differ from those projected in the forward-looking statements. These forward-looking statements include, among others: comments relating to the current and future performance of the Company’s business; the pending merger with KushCo; the Company’s strategies; the impacts of acquisitions and other similar transactions; growth in demand for the Company’s products; growth in the market for cannabis and nicotine; the Company’s marketing and commercialization efforts; and the Company’s financial outlook and expectations. For a description of factors that may cause the Company’s actual results or performance to differ from its forward-looking statements, please review the information under the heading “Risk Factors” included in the Company’s most recent Annual Report on Form 10-K for the year ended December 31, 2020, the Company’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2021 and the Company’s other filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. Additional information is also set forth in Greenlane’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2021. Undue reliance should not be placed on the forward-looking statements in this press release, which are based on information available to Greenlane on the date hereof. Greenlane undertakes no duty to update this information unless required by law.
(This information is primarily sourced from GNLN. Highly Capitalized has neither approved nor disapproved the contents of this news release. Read our Disclaimer here).