Growlife Inc (OTCMKTS:PHOT) is back among the stocks being discussed. After a steady decline in recent months, the stock rose to match its last three month’s high. Different theories are still being thrown regarding the cause of the major increase. In this piece, we discuss the company, their latest addition, and financials and any other likely factors which may have led to the price movement. Take a look at its price movement:
Cofounders Kyle Tracey and Todd Denkin established GrowLife, Inc. in 2001 as a biological production company. The company is a distributor of organic plant nutrients, hydroponics equipment, farming soil, and other products to specialty grow operators within the USA.
Some of its agricultural equipment includes growing mediums, hydroponics systems, tools for cutting and propagation, bulbs, indoor lighting systems, and accessories, ballasts, reflectors, meters and timers, and other technology control equipment for the cannabis and indoor plant cultivation and industries.
Using it rich e-commerce delivery channels such as Growlifeeco.com, Greeners.com, ShopGrowLife.com as well as retail stores, the company is able to make the product available to its customers. GrowLife, Inc’s head office is located at Kirkland, Washington.
For more information, you can go through our last article on the company here.
Growlife recently announced that it has added to its team Mr. Brian Knight to its team in the capacity of National Sales Director. As the NSD, Mr. Knight will have complete oversight of the national sales team and while aiming to grow the firm’s commercial division.
Having held senior positions in major sales institution for more than a decade, he adds cross-industry knowledge of sales channel management and systems. Mr. Knight is expected to use his vast experience in developing supply sales to further improve the opportunities and sales pipeline for GrowLife’s product lines, some of which include the use of large-scale commercial flooring contracts.
In addition, he is expected to work on optimizing the current sales process for the company’s group of commercial propagation and cultivation products, which include the recently purchased EZ-Clone Pro, an industry known commercial cloning system, developed for higher quantities of cannabis production.
The leader of the commercial division explained that while the firm looks to grow its commercial accounts base within the country, Mr. Knight’s experience and credentials stood out, given its alignment with the firm’s need to appoint a seasoned leader to influence its sales process. He further added that confidence is high across the team that Brian can help the firm meet its goals in 2019 and after.
Starting out as a field sales personnel, Mr. Knight worked at a building supply distribution company which had existing relationships with large box brands such as Home Depot. He was later trained to develop large teams of sales representatives where he taught selling skills, developed and controlled profits plans and budgets, and designed critical training programs which were in line correspond with the firm’s sales strategy. In his last role, he was in charge of all business development activities ranging from sourcing of leads to identifying open markets and closing new clients at different points of the building process, such as retailers, independent business owners, homeowners, partnering manufacturers and wholesalers.
The President of Grow Life’s commercial division, Joe Barnes was quoted saying “GrowLife has recently expanded its product offering and grown at an escalated rate. In order to capitalize on this momentum, we needed to get someone in place who will ensure our current customers continue to receive the high level of customer service we demand while building a pipeline of new customer accounts. We are looking forward to all Brian will bring to this position and welcome him to the GrowLife family.”
Based on the last released results, the company has returned to positive revenue change in 2017 after consecutive years of declining income. Some of the increase was a result of increased sales personnel and channels of distribution.
Similar to revenue but on a lower scale, cost of sales increased for the year. Hence, the improved gross margin in the year resulting from the increased sales, offset by lower cost of sales related to increased supplier discounts and a favorable product mix.
Overall, the year was a positive one for Grow Life Inc., although a net loss of $5.32 million was recorded for the year, the figure was a whopping 31% increase from the previous year’s loss.
The addition of Mr. Knight to an already experienced team is a sign of the firm’s aggressive strategy to move sales to the next level. If the company executes as expected, 2019 could be the year for Growlife.
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Disclosure: We have no position in PHOT and have not been compensated for this article.
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