08.12.22
Net revenue for Grove Collaborative, a leading sustainable consumer products company, was $79.3 million, representing a 12% decline from the first quarter of 2022 and down 20% year-over-year.
The results, reported Thursday, reflect the fiscal second quarter ended June 30.
Company officials called the results the start of its ongoing efforts to eliminate unprofitable revenue and drive improved margins, on a sequential basis, to be profitable in 2024.
“I’m proud of our accomplishments in the second quarter, which include expanding our retail footprint by entering into three new retailers and increasing our assortment at Target by over 100%; partnering with Drew Barrymore on our first multi-channel brand campaign, “Wish-cycling”; and successfully completing our business combination with Virgin Group Acquisition Corp. II,” said Stuart Landesberg, Grove CEO. “While revenues in the quarter were down year-over-year as consumers return to pre-pandemic shopping patterns, and as we scale back on inefficient advertising spend and refocus on profitable growth, second quarter results came in ahead of internal expectations and we are pleased to raise our full-year guidance.”
DTC net revenue per order was $58.28 in the second quarter of 2022, up 3% year-over-year from $56.43 in the second quarter of 2021.
Grove brand products represented 48.2% of net revenue in the second quarter of 2022, an increase of 30 basis points from 47.9% in the second quarter of 2021.
In the second quarter, 60% of Grove Brands net revenue came from either zero-plastic, reusable or refillable and zero plastic waste products, determined as meeting the company’s Beyond Plastic standard, up significantly from 47% in the second quarter of 2021 as Grove’s no- and low-plastic assortment grows and continues to be adopted by customers.
Across the Grove.co site and through retail partners, plastic intensity was 1.07 pounds of plastic per $100 in revenue in the second quarter of 2022 as compared to 1.34 in the second quarter of 2021, following the intended trajectory.
Across all Grove brands, plastic intensity was 0.87 pounds of plastic per $100 in revenue in the second quarter of 2022 as compared to 1.18 pounds in the second quarter of 2021.