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.
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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.
