TPCO Holding Corp. (NEO: GRAM), also known as The Parent Company, announced on late Monday its Q1 2022 financials. The company reported a quarterly revenue of $33.2 million, down from Q1 2021’s revenue of $39.9 million.
“As announced on March 31, 2022, the Company intends to maintain a minimum cash balance of approximately $100 million at fiscal 2022-year end,” the company said in its statement.
One of its strategies to achieve this is shifting its revenue mix away from wholesale. Wholesale revenue contributed $14.1 million to the revenue this quarter compared to $30.2 million last year. Meanwhile, omnichannel retail increased its revenue share to $19.1 million this quarter from $9.7 million last year.
The firm also improved its gross margin to 25% coming from 18% last year, on its way to its set target “in excess of 30%.”
However, the firm still incurred operating expenses higher than its revenue at $40.6 million, albeit lower from last year’s $63.0 million. This led to recording an operating loss of $32.4 million, down from last year’s loss of $114.0 million, which includes a $58.0 million impairment loss.
Further down, the cannabis firm notched a net loss of $33.5 million for the quarter, a significant decline from last year’s net income of $19.1 million. This translates to $0.34 loss per share.
Calibrating for financial items, adjusted EBITDA for the quarter came in at a loss of $19.2 million, down from a loss of $10.2 million.
“We are building this business for the long-haul and the steps we are taking now will help to preserve our strong balance sheet and grow our omnichannel retail business,” said CEO Troy Datcher. “These initiatives support our goal to become cash flow positive in fiscal 2023 are expected to deliver strong value for our shareholders.”
As it stands, the firm’s operating net cash used during the quarter came in at $25.8 million compared to $53.2 million in the year-ago period.
The company ended the quarter with a cash balance of $152.2 million, putting the balance of current assets at $197.7 million. Current liabilities ended at $51.2 million.
The Parent Company last traded at $1.12 on the NEO.
Information for this briefing was found via Sedar and the companies mentioned. 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.
