Parent company’s Q2 revenue nearly halves year-on-year, net loss also worsens
TPCO Holding Corp. GRAM GRAMF published on Tuesday its
second quarter financial results with rrevenues of $27.4 million, misses Yahoo Finance Average analyst estimate of $33.23 million. Compared to the same period of 2021, rrevenue was down 49% from $54.2 million.
Second Quarter 2022 Financial and Operational Highlights
Net loss and comprehensive loss for Q2 2022 was $30.5 million, compared to net profit of $5.82 million in Q2 2021.
Gross margin for the second quarter of 2022 was $6.6 million, or 24% of net sales, compared to gross margin of $4.78 million for the same period of 2021.
Adjusted EBITDA was a loss of $18.4 million, compared to an Adjusted EBITDA loss of $13.12 million in the corresponding period last year.
“Our team remains focused on transforming our business, and this quarter’s results are a first indication that our plan to improve profitability is working,” said Trojan Datcher, CEO and Chairman of the parent company. “As expected, our efforts to maximize contributions from our omnichannel retail opportunities and minimize our exposure to the California wholesale market have significantly shifted our revenue mix. While this move squeezed core sales, it generated strong gross margin of 24% from the second quarter to 9% in the prior year period, as our omnichannel retail revenue increased by 60% to represent 69% of our net sales in the quarter. »
Expansion into the East Coast market with exclusive brand licensing and culture production agreements in Maryland with Curio Wellness.
The initial brands to be introduced under the license agreement include Monogram, Caliva, Mirayo de Santana and other brands owned by TPCO, in a variety of product form factors including fresh potted flowers, meadow -rollers, premium vapes and infused gummies. Some of the products will include iconic strains of cannabis bred by Curio in collaboration with The Parent Company. The parent company’s brands are initially expected to be available at Far & Dotter dispensaries in Curio, and then broad wholesale distribution to dispensaries statewide will follow.
Update on Long-Term Profitability Initiatives
As previously announced, the company has begun the process of implementing a variety of strategic initiatives which are primarily focused on preserving its balance sheet while strengthening its omnichannel retail business. Since announcing this initiative, the company has taken significant steps to reduce costs, increase efficiency and accelerate its path to long-term sustainable profitability.
Shares of the parent company were trading down 1.84% to 80 cents per share at the time of writing on Tuesday morning.
Nabis Cannabis Companies and Parent Company Forge Exclusive Distribution Partnership
Parent company to enter Maryland cannabis market through exclusive partnership with Curio Wellness