15 annotations
The overproduction issues will get solved because people will die, okay? And that's what has to happen here. I mean, Joe, I think, said it earlier, is that there is going to be non-survivors here. That will not be us.
(No comment added)
Transcript
2022 Q3
4 Aug 22
but it's a high percentage that goes into cannabis.
(No comment added)
Transcript
2022 Q3
4 Aug 22
If you -- even with the noise we've had both in this disruption and then looking back at 2018, went through that, if you look at our I think 5- or 6-year CAGR, it's about 6%. That's roughly where we look at the business is kind of mid- to high single-digit growth sort of into the long term, obviously, with margin recovery through '23 but really getting to where we want to be from a margin perspective in '24.
(No comment added)
Transcript
2022 Q3
4 Aug 22
No, I appreciate that. It sounds like it boils down to the fact that we have too many growers and allow them not to go out of business, that's happening but too slowly?
(No comment added)
Transcript
2022 Q3
4 Aug 22
There are states like Michigan and Oklahoma that are producing and licensed producers so much cannabis that it is -- that cannot be sold because there's no -- I don't know what the numbers are but let's just say that Oklahoma requires 0.5 million pounds.
I think the number is like 11 million pounds or something like that, that they've licensed or if everybody grew to what the license would allow.
So that product can't be used in the state. It has to be illegally shipped out of the state. And it is -- if you look at the volume of it, it's depressing the entire like American market and then throw banking and taxation on top of that.
(No comment added)
Transcript
2022 Q3
4 Aug 22
Hawthorne did not had a strong month in July, I wouldn't say that the trends we've been experiencing for sort of the beginning of this fiscal year continued through Jul
(No comment added)
Transcript
2022 Q3
4 Aug 22
not Hawthorne. It's been -- I mean Hawthorne is just bobbing along, not really seen a recovery yet
(No comment added)
Transcript
2022 Q3
4 Aug 22
And indoor growing is still the most significant part of the Hawthorne business. But wholesale prices got to get to the part where people can sort of justify the capital expenditure to upgrade and add cultivation space.
(No comment added)
Transcript
2022 Q3
4 Aug 22
Hawthorne moderate growth.
(No comment added)
Transcript
2022 Q3
4 Aug 22
Hawthorne sales were down 63% for the quarter. The run rate for that business did decline slightly in the quarter, in line with the revised guidance we provided in early June. The decline was driven by less outdoor growing in the third quarter than we originally had expected and further delays in capital projects for indoor growers, both driven by the oversupply in the cannabis industry. It's also important to note that we were comparing against record results.
The third quarter of 2021 was the highest quarter of sales in Hawthorne's history.
(No comment added)
Transcript
2022 Q3
4 Aug 22
We clearly overbuilt the infrastructure of this business and I'm not going to sugarcoat it. The difference in cost of what we have versus what we need is roughly $65 million a year.
(No comment added)
Transcript
2022 Q3
4 Aug 22
Already, the market is evolving to one which large-scale innovative growers are most likely to succeed
(No comment added)
Transcript
2022 Q3
4 Aug 22
we're hopeful to start posting modest growth in fiscal '23.
(No comment added)
Transcript
2022 Q3
4 Aug 22
We believe we are seeing a reset in the industry right now with some cultivators simply walking away because of the tough business climate.
(No comment added)
Transcript
2022 Q3
4 Aug 22
Moving on to Hawthorne. The story has not changed much. Cannabis prices remain significantly lower due to excess inventory produced by cultivators
(No comment added)
Transcript
2022 Q3
4 Aug 22
- Prev
- 1
- Next