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KIRKLAND, Wash., Nov. 13, 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 September 30, 2019. The company experienced growth over last year, showing an 141% increase in revenue over Q3 2018, from $1.0 million to over $2.3 million in Q3 2019. Additionally, the company continued to make significant progress in improving profitability, reporting $746,000 in gross profit for the three month period ending September 30, 2019, a 1,256% increase over the same period last year. This was due to a major shift in profit margins, which increased to 32.4% in Q3 2019 compared to just 5.8% in Q3 2018.
GrowLife CEO Marco Hegyi stated “In our toughest seasonal quarter, I see Q3 as a good quarter for GrowLife for three reasons: First, we achieved our highest revenues of the year so far by growing over 141% over last year same period. The summer quarter is usually challenging for GrowLife but demand for both GrowLife and EZ CLONE products remains strong. Second, gross margins remain strong at over 32.4% where in the three quarters of 2019 we generated almost three times as much gross margin dollars as we have in all of the last three years combined. We are not stopping there. We eliminated low performing business areas such as retail hydroponics and flooring, this is expected to and lower our monthly spending by up to $100,000 per month. And three, we are utilizing the increased gross margin and savings to invest in our announced plans for 2020 of providing hemp CBD clones under the EZ CLONE brand are intended to serve the high-demand CBD market. We believe this may lead to even greater growth for the Company.”
THIRD QUARTER 2019 FINANCIAL RESULTS
Net Revenue: For the period ending September 30, 2019, GrowLife showed net revenue of $2.3 million as compared to revenue of $1.0 million for the period that ended September 30, 2018, an increase of 141%.
Gross Profit: For the period ending September 30, 2019, GrowLife showed gross profit of $746,000 as compared to revenue of $55,000 for the period that ended September 30, 2018, an increase of 1,256%.
Gross Profit Margin: Gross Profit Margin, expressed as a percentage of the difference between revenue and cost of goods sold divided by revenue, was 32.4% for the period ending on September 30, 2019, compared to 5.8% for the period ending June 20, 2018, an increase of 463%.
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.