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Saturday, Jul 2, 2022
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.

Business

TGOD reports record revenue of $10.58 million in Q1

The launch of new products such as Cherry Mints, Maple Kush, pre-rolls boosted revenue this quarter

TGOD ends fiscal year with revenue up 149% to $39.2M
Photo via TGOD

The Green Organic Dutchman Holdings Ltd.  (CSE: TGOD) (OTC: TGODF) has started 2022 with a record quarterly revenue thanks to new product sales.

On Thursday, the cannabis producer announced its financial statements for the first fiscal quarter ended March 31 and saw net revenue of $10.6 million which is a 12 per cent increase from $9.5 million in the last quarter.

The company says the positive results are attributed to the launch of new products such as Cherry Mints, Maple Kush, pre-rolls and existing products like Highly Dutch Organic. Gross profit reached $5.6 million from $710,000 in the last quarter.

TGOD says it expects to see this traction to continue to achieve a “breakeven” Adjusted earnings before interests, taxes, depreciation and amortization (EBITDA).

Adjusted earnings before interests, taxes, depreciation and amortization (EBITDA) loss was $2.24 million which is a 57 per cent improvement from $2.9 million last year.

General and administrative expenses decreased to $3.9 million from $4.57 million in the last quarter. The decrease is attributed to the reduction of office expenses and the decrease of termination benefits.

TGOD reports record revenue

Graph via TGOD

Read more: TGOD ends fiscal year with revenue up 138% to $30.2M

Read more: TGOD’s Q3 revenue drops 23%

“We continued our momentum from Q4 2021 with strong Q1 2022 results, including another record month in March,” TGOD’s CEO Sean Bovington said.

“In addition to continuing to increase our retail distribution by investing in building relationships with the retail cannabis chains to expand distribution, we are preparing for future growth.”

TGOD expects its Valleyfield, Quebec production facility to add 2,500 to 3,000 kilograms of flower annually while remaining the production facility for hash products.

The company expects to sell its Poland-based HemPoland S.p.a. Z.o.o. subsidiary in the upcoming months as it was deemed not essential for future operations.

“We remain on track to achieve breakeven EBITDA on a monthly basis in Q2 and are pursuing opportunities for additional cultivation for 2023 to meet the strong demand for our products, specifically our premium flower,” Bovington said.

Company stock went down by 4.76 per cent on Friday to $0.10 on the Canadian Securities Exchange.

 

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