If you a growth investor who wants to earn some fantastic long-term returns, cannabis is an industry you shouldn’t overlook.
It’s still important to buy shares of companies that have been able to balance growth while maintaining strong bottom lines — this minimizes the risk of future share dilution.
Its presence has grown significantly over the years — today it has more than 100 dispensaries, more than double the 48 it had two years ago, and operates in 23 states, up from 12 in 2019. Since 2019, it has launched operations in Europe.
In its most recent earnings results, released on May 10 for the period ending March 31, the company said it raised $300 million to focus on and scale its operations in states that have recently legalized marijuana for recreational use.
That’s important, because that means it doesn’t need to worry about the federal ban on marijuana, and its products can cross state lines.
The company was profitable without even having to rely on adjusted EBITDA — its net income was more than $5 million.
And during the first three months of 2021 it is continuing to post strong numbers, with sales hitting $90 million, nearly three times the $33 million it recorded in the same period last year.
As of the end of Q1 the company had 53 hydroponic and garden stores across 12 states, more than double the 24 locations it had two years earlier.
Despite its already impressive growth numbers, there’s still plenty of room for GrowGeneration to expand.