Net sales for Grove Collaborative were $53.5 million – down 10.5% in Q1 2024 compared with the prior-year quarter – and down 25.2% year-over-year. 

 

According to the company, the sequential and year-over-year (YoY) declines continue to be driven by a decrease in direct-to-consumer orders resulting from lower advertising spend throughout 2023 and the first quarter of 2024. 

 

Company officials said Grove spent a “record low” on advertising as a percentage of revenue in the first quarter of 2024 as it prioritizes marketing efficiency and focuses on transforming its business model. The YoY reduction in orders was partially offset by an increase in net revenue per order.

 

Grove Collaborative said its first quarter 2024 financial results include several milestones for the company, including its third consecutive quarter of positive adjusted EBITDA, demonstrating continued progress on overall profitability while laying the groundwork for the business transformation to drive top line growth.

 

“This quarter’s results show the early benefits of our continued focus on profitability alongside our focus on being the trusted brand for conscientious customers who are seeking high-performing, planet-friendly products. But I want to emphasize this is just the beginning of our transformation,” said CEO Jeff Yurcisin. “In my first nine months, we’ve made a number of strategic changes to our business to build a stronger foundation for long term profitability and growth so that we are better able to support our customers’ individual sustainability journeys and transform the industry into a force for human and environmental health.”

 

In terms of outlook for 2024, Chief Financial Officer Sergio Cervantes said Grove continues to be optimistic on its ability to drive sequential revenue growth in the second half of the year and deliver positive adjusted EBITDA, despite the uncertainty around the business model transformation and ability increase advertising spend over the course of the year. 

Grove Collaborative Holdings, Inc. has launched its fifth annual Sustainability Report for 2023-2024. The comprehensive report provides detailed updates on key company commitments, progress, and partnerships across material issues relating to Grove’s business, including plastic, carbon, forest health, ingredient standards, and justice and equity.

Grove also announced its B Corporation recertification by B Labs with a score of 100.9 points. The progress on key programs in the past calendar year and improved metrics of Grove’s entire social and environmental impact reinforce Grove’s continued commitment to transform the consumer products industry into a positive force for human and environmental health, company officials said.

The primary drivers of Grove Collaborative’s score include the following:

Becoming a Public Benefit Corporation: Grove Collaborative became a Public Benefit Corporation in 2021, marking a significant change by requiring the company to balance the interests of stakeholders and their stated public benefit: the development, promotion, and distribution of consumer products as a positive force for human and environmental health;

Improved Climate Strategy: Since 2020, Grove measures and reports on full scopes one-three emissions (direct and indirect emissions) and has carbon neutral offices, fulfillment centers, and customer shipping; and
 

Environmentally Preferable Product Assortment: Grove demonstrated that a greater share of its product assortment contains more recycled, certified compostable, or otherwise recyclable product materials, bio-based and non-toxic ingredients, and sustainability-related third-party certifications.
 

Grove noted its dedication to upholding its B Corporation status — particularly following its recent recertification with an impressive score — underscores its steadfast commitment to modeling more sustainable business practices for the consumer packaged goods and retail sectors.

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