TGOD Reports Q1 Revenue Of $7.7 Million, Net Income Of $12.5 Million
The Green Organic Dutchman (TSX: TGOD) last night reported its first quarter financial results, with revenue amounting to $7.7 million for the quarter, a decline of 17% on a quarter over quarter basis. Notably, the company reported gross revenue within the related news release rather than net basis like its peers. The company also reported a net income of $12.46 million.
Revenue for the quarter was largely comprised of cannabis products in Canada, which amounted to $6.67 million for the three month period. Also included in the sales figures is hemp sales of $2.31 million. Cannabis sales were down 22% on a quarter over quarter basis while hemp sales were down just 2.5%.
With net revenues of just $7.7 million, the company reported a cost of sales of $6.4 million, resulting in a gross profit before biological adjustments of $1.3 million. Operating expenses meanwhile amounted to $9.0 million for the quarter, the largest expense of which is general and administrative, which came in at $4.5 million. The company posted an operating loss of $5.9 million as a result.
However, the company managed to post a positive net income for the quarter as a result of a $21.8 million reversal of impairment related to its Quebec facility now classified as being held for sale. The company as a result managed to post a net income of $12.5 million.
Looking to the balance sheet, the company reported a cash position of $16.5 million, and improvement from the $11.2 million figure reported in the prior quarter. Current assets jumped from $44.4 million to $91.6 million, much of which is attributable to assets held for sale climbing from nil to $43.2 million.
Current liabilities meanwhile fell from $66.4 million to $59.5 million, with the company seeing its accounts payable fall from $24.5 million to $16.1 million, while current portion of loans grew to $42.3 million.
TGOD last traded at $0.345 on the TSX.
Information for this briefing was found via Sedar and The Green Organic Dutchman. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.
