Remi Smith's questions to Greenlane Holdings (GNLN) leadership • Q1 2023
Question
Remi Smith of Alliance Global Partners inquired about the progress of Greenlane's asset-light models for its CCELL and packaging businesses, asking when the margin benefits would be realized. Smith also asked about expectations for the consumer goods (CPG) business, the impact of a constrained consumer wallet on high-ticket items, and the resulting sales mix.
Answer
CEO Craig Snyder explained that the asset-light transition is on track, with significant margin benefits expected in Q3 and Q4 as current inventory is sold through. He noted this strategy improves cash flow and will shift revenue recognition to a net basis, increasing gross margin percentages. Snyder also addressed the consumer segment, stating the 'Groove' brand was launched to offer affordable options, catering to new users and budget-conscious consumers. He confirmed that while a premium market still exists, growth is stronger in the more modest price segment, reflecting both new user adoption and consumer spending habits.