LANSING, Mich., July 8, 2020 /PRNewswire/ -- Green Peak Innovations (GPI), Michigan's leading vertically integrated cannabis operator, today provided an update regarding the company's COVID-19 response, second quarter performance and plans for rapid growth.
Jeff Radway, CEO and Co-Founder stated, "Our performance during these extraordinary times confirms the underlying strength of the organization in our ability to remain focused, flexible and agile throughout this uniquely challenging operating environment."
"Our team has worked tirelessly to support the growing demand from our patients and customers while maintaining an unwavering commitment to safeguard the health of our customers and employees. I am both incredibly proud and inspired by the way our employees have rallied in their support of one another and the organization. Their resolve has put us in a position to emerge from this period of uncertainty stronger than ever."
"While the COVID-19 pandemic remains a fluid situation, our entire team is dedicated to ensuring the health and safety of our employees, maintaining the quality and integrity of our products and inspiring people everywhere to feel better, live better and do better."
GPI has remained fully operational throughout the COVID-19 pandemic as cannabis cultivators, processors and retailers were deemed "essential" by the state of Michigan. The company immediately implemented best-in-class cleaning and safety measures to preserve the health of employees and customers while instituting a 20% gratitude pay increase for all front-line employees in cultivation, operations and retail. Meanwhile, employees at headquarters have been afforded the ability to work from home.
Additionally, the company's Skymint-branded retail stores led the way in providing curbside pickup in accordance with guidelines provided by the Michigan Marijuana Regulatory Agency. Despite a substantial shift in operational logistics, GPI successfully implemented exclusive online ordering for curbside pickup resulting in a seamless transition to a safe, convenient and uninterrupted brand experience for our customers.
New Stores, New Brands, New Customers
During the pandemic, GPI opened three new Skymint retail stores, with two located in Lansing and a third in Traverse City. These new locations opened successfully for curbside pickup and anticipate welcoming guests into brand new sales floors when conditions are deemed to be safe for both customers and employees. With these additions, GPI now operates nine Skymint-branded retail stores in Michigan with at least three more locations planned to open before the end of 2020. The company has an additional ten stores in development and expects to have at least 25 stores open or in development by year end.
In May, GPI introduced two new brands to its product portfolio. The company launched its Jolly Edibles™ line in partnership with Short's Brewing Company, with three flavors inspired by the brewery's most iconic beverages. The company also introduced a value-oriented flower product line in Two Joints™ with a portion of every product sale going to the Last Prisoner Project in support of the organization's clemency efforts.
As part of its objective to provide Michigan consumers with the highest quality cannabis products, GPI's wholesale operations have made significant progress. Over the last year, the company has added over 165 clients out of a total addressable market of roughly 200 accounts, with 50 of those clients added in just the past two months. With additional cultivation and processing capacity expected later this year and plans to launch additional brands to support the expanded output, the company anticipates further ramping its share of shelf and leadership position in Michigan's wholesale market.
Second Quarter Performance
During the second quarter, the company grew net sales by approximately 50% sequentially with broad-based strength driven by both the retail and wholesale operations. Additionally, the company continues to generate solid operating profit margins as well as positive operating cash flow.
"Our strong second quarter results were driven by the focus, commitment and perseverance of our team members and the successful execution of our strategies," added Radway. "With retail, wholesale and production teams all exceeding internal targets in June, we are beginning to hit on all cylinders. As we enter the second half of the year, we expect to build on our financial momentum with significant sales and profit growth. With additional cultivation and processing capacity poised to come online later this year, we fully expect this momentum to continue, and potentially accelerate, heading into 2021."
About Green Peak Innovations
Green Peak Innovations is Michigan's leading vertically integrated cannabis company and the state's largest medical and recreational license holder. With two state-of-the-art indoor grow facilities, the company cultivates, processes, markets and distributes a full range of branded cannabis products, including Skymint™, North Cannabis™, Jolly™, Two Joints™ and St. Jade™. Green Peak Innovations products can be found at the company's Skymint™ retail stores and retailers around Michigan through a robust wholesale network.
As purveyors of premium-crafted cannabis, we've developed a portfolio of the finest cannabis brands available for daily wellness, healing or just getting high on life. Green Peak Innovations inspires people everywhere to feel better, live better and do better.
SOURCE Green Peak Innovations