GrowGeneration Releases 2024 Shareholder Letter and Business Update
GrowGeneration Corp. (NASDAQ: GRWG), a leading retailer and distributor of hydroponic and organic gardening products in the U.S., has released its 2024 year-end shareholder letter from Co-Founder and CEO Darren Lampert. The letter highlights the Company’s accomplishments, preliminary full-year 2024 results, and operational updates.
Dear Fellow Shareholders,
2024 marked a year of significant transformation and progress for GrowGeneration. On behalf of our executive team and Board of Directors, I extend my gratitude to our loyal shareholders for supporting us as we executed our strategic restructuring plan to drive revenue growth, improve margins, and build a more efficient and profitable company.
A Year of Transformation
As we enter 2025, I’m excited to share how GrowGeneration has evolved into a product-driven organization with a strong focus on business-to-business (B2B) customers. A key milestone was achieving over 30% of our cultivation and gardening revenue in Q4 2024 from proprietary brands, bringing us closer to our goal of reaching 35% by the end of 2025. This shift is critical to driving higher margins and recurring revenue.
Our proprietary brands—such as Char Coir Coco, Drip Hydro nutrients, and Ion LED lighting solutions—have gained widespread adoption among large-scale cultivators. These innovative, cost-effective, and sustainable products are not only transforming cannabis operations but also expanding into vertical farming, greenhouses, and home gardening markets.
In 2024, we also prioritized a digital transformation across our organization, launching a new B2B e-commerce platform in Q4. Early feedback has been highly positive, and we’re actively migrating transactions from brick-and-mortar stores to this digital platform. To support this shift, we’ve implemented a new fulfillment strategy, allowing commercial customers to shop online and pick up orders at warehouse-style locations for added convenience.
Streamlining Operations
We successfully streamlined operations throughout 2024, exceeding our store closure targets ahead of schedule. We now operate 31 stores and two regional distribution centers, down from previous levels. Efforts to improve efficiency included reorganizing sales, marketing, and administrative functions, rationalizing inventory, revisiting vendor relationships, and enhancing freight expense recovery. Collectively, these initiatives are expected to reduce annual expenses by approximately $12 million, driving higher margins and profitability.
Financial Strength and Momentum
Our preliminary, unaudited 2024 financial results reflect the success of these efforts. For the full year 2024, we anticipate:
- Total net sales between $188 million and $190 million;
- Proprietary brand sales of $39 million to $40 million;
- Positive same-store sales for the full year;
- Storage solutions sales ranging from $25 million to $26 million;
- A debt-free balance sheet with over $56 million in cash, cash equivalents, and marketable securities.
With a leaner cost structure and optimized store footprint, we are well-positioned for profitability in 2025. Our focus remains on recurring revenue streams, including consumables like Drip Hydro powders and Char Coir bio pots, while improving margins through a product mix increasingly weighted toward high-margin proprietary brands. Reduced overhead and optimized store locations further support this momentum.
