Greenlane Announces First Quarter 2020 Financial Results

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Greenlane Announces First Quarter 2020 Financial Results

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Greenlane Holdings, Inc. (Nasdaq: GNLN) is one of the largest global sellers of premium cannabis accessories and specialty vaporization products. On June 4, the company reported financial results for the first quarter ended March 31, 2020.


The results given below have comparisons made between Q1 2020 and Q4 2019 results

  • Revenue for the first quarter of 2020 was approximately $33.9 million;
  • Sales of Greenlane Brands grew to $6.3 million dollars, representing 18.5% of total revenue;
  • Gross profit was $7.3 million, or 22% of net sales, an increase of $0.8 million, representing an improvement in gross margin of 414 basis points;
  • It entered into a new lease agreement for a new retail store located in Barcelona, Spain, which opened to the public on May 26, 2020;
  •, one of the Company’s e-commerce platforms, daily store transactions increased 50.4%;
  • VIBES branded products now present at over 2,000 Greenlane customer retail locations;
  • Demonstrated commitment to business transformation plan through the targeted reduction of approximately 50 employees which is expected to positively impact the Company’s results in future quarters;
  • In response to the impact of COVID-19 and changing consumer demand, Greenlane has shifted resourcing towards more in-demand revenue channels, adding sales resources to Channel and Dropship and operational resources to B2C.

Q1 2020 Financial Summary

  • Net sales were $33.9 million in the first quarter of 2020 (“Q1 2020”), as compared to $49.9 million for the first quarter of 2019 (“Q1 2019”), a decrease of $16.0 million or 32.1%.
  • Net sales of Greenlane Brands grew to $6.3 million dollars, representing 18.5% of total revenue in the first quarter of 2020, as compared to $4.6 million in the first quarter of 2019.
  • On March 31, 2020 the Company closed its brick-and-mortar retail store in Ponce City Market. In addition, Greenlane closed its Schenectady, NY and Delta, Canada distribution centres on May 14, 2020, and May 15, 2020, respectively, and expects to close its Jacksonville, FL, Torrance, CA, and Visalia, CA distribution centres in June 2020. With this the Company’s business transformation plan and ongoing efforts to optimize its distribution network.
  • Q1 2020, gross profit was $7.3 million, or 22% of net sales, compared to $9.0 million, or 18% of net sales in Q1 2019.
  • Salaries, benefits, and payroll taxes in Q1 2020 decreased approximately $1.5 million, or 18.2%, compared to Q1 2019, primarily due to a decrease in equity-based compensation expense of $2.5 million.
  • Q1 2020 general and administrative expenses increased by approximately $3.3 million to $8.7 million in Q1 2020 compared to $5.4 million in Q1 2019, primarily due to additional costs incurred in connection with operations as a public company.
  • During Q1 2020, the Company recorded a Goodwill impairment charge of $9.0 million related to the United States reporting unit.
  • Q1 2020 net loss was $16.8 million, compared to $17.7 million in the same period for the prior year.
  • Cash and cash equivalents were $43.9 million and total debt was $8.3 million as of March 31, 2020, compared to $47.8 million and $8.3 million, respectively, as of December 31, 2019.
  • The change in revenue is largely attributable to the FDA’s restriction on the sale of certain products.


(Source: Business quant)

On June 4, the stock of the company closed at $3.26, and the next day with 21.17% high. The above are some key ratios related to the company.


Greenlane is the global seller of premium cannabis accessories, CBD and other liquid nicotine products. The Company operates as a powerful house of brands and third-party brand accelerator. The distribution platform for consumption devices and lifestyle brands serving the global cannabis. CBD, and liquid nicotine markets with an expansive customer base around11,000 retail locations, including licensed cannabis dispensaries. The company has an established track record of partnering with brands through all stages of the product lifecycle, providing a range of services. It also including product development, go-to-market strategy, sales and marketing support, market research, direct-to-consumer fulfillment, warranty repair, supply chain management. Greenlane is the partner for many of the industry’s leading players including, Grenco Science, Firefly, DaVinci, Eyce, Santa Cruz Shredder, Cookies, JUUL, PAX Labs and dozens of others.

Greenlane Brands category involves child-resistant packaging innovator Pollen Gear, VIBES rolling papers, the Marley Natural accessory line, the Keith Haring Collection accessory line, Aero spaced & Groove grinders, and Higher Standards, which is both an upscale product line and an innovative retail experience with the flagship stores at New York City’s famed Chelsea Market and in Malibu, California.

Forward-Looking Statements

The impact of the COVID-19 pandemic on the Company’s business reduced the profit and the growth of demand for the Company’s products. The growth in the market for cannabis and nicotine is also got impacted. But the Company’s marketing and commercialization efforts will over this and also the Company’s financial outlook and expectations. Currently the company holds the total market capitalization of 48.7M continuously working on expanding the business.

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