Green Organic Dutchman Holdings Slightly Beats Projections With $11.8M In Q2 2021 Revenue, Canadian Cannabis Sales Up 55% QoQ

Canadian cannabis producer The Green Organic Dutchman Holdings Ltd. TGOD TGODF reported its unaudited interim financial results Wednesday for the second quarter of fiscal 2021. Shares traded down roughly 1.5% at $0.25 per share in Wednesday's after-hours session.

"Growth continued in the second quarter as the organization remained focused on executing our turnaround plan and fulfilling the TGOD Promise," Sean Bovingdon, TGOD's CEO and interim CFO said.

Here's a breakdown of what the second-quarter earnings report showed:

• Consolidated revenues totaled $11.82 million, slightly beating its projections, compared to $8.98 million in the prior period, representing a quarter-over-quarter increase of 32%.
• Sales from cannabis products in Canada amounted to $10.4 million, up by 55% sequentially, mainly driven by the company's mainstream portfolio under the Highly Dutch brand. Hemp-derived product sales in Europe totaled $1.42 million.
• Gross profit, before changes in fair value of biological assets, was $3.27 million compared to $1.34 million in the previous quarter and $0.99 million in the fourth quarter of last year.
• General and administrative expenses remained relatively flat compared to the prior year at $5.74 million.
• Sales and marketing expenses of $1.34 million decreased in comparison to expenses of $2.24 million for the same period in 2020.
• Net loss of $32.48 million, which includes the $17.69 million loss on the assets held for sale of its Valleyfield, Quebec-based facility recently sold to Cannara Biotech Inc. LOVE for $32.7 million, including a $27 million purchase price and a $5.7 million deposit refund from Hydro-Quebec.
• Loss from operations was $9.08 million.

In addition, the company eliminated its senior term debt of over $30 million at a 13% interest rate, in conjunction with the sale of the Quebec facility.

The Toronto-based company said it continues to pursue other international opportunities by exploring Germany, Mexico, Australia and South Africa markets.

Photo: Courtesy of The Green Organic Dutchman Holdings Ltd.