Red Light Holland's Q1 2024 Performance: Revenue Soars 53% And Solid Cash Balance

Ontario-based mushrooms producer Red Light Holland Corp. TRUFF filed its quarterly financial statements, management discussion and analysis for the three months ended June 30.

The Numbers:

• Cash and cash equivalents totaled $12.9 (CA$17.5) million in June 30, 2023 compared to the $13.6 held in March 31, 2023 and to the almost $17 million held by the end of the comparable quarter in 2022.

• Quarterly revenue of $885.396 vs. $578.451 in the same period in 2022, a 53.1% increase; and gross profit of $385.417 vs. $213.071, representing an 80.9% increase jump from one year to the next. 

• Quarter’s operating expenses of $1.9 million vs. $1.2 in the same period in 2022. 

• Quarterly net loss of $1.4 million vs. $1.1 million in the comparable period in 2022.

CEO Todd Shapiro says the team remains confident in its “everything mushroom company” growth strategy while also keeping a focus on emerging psilocybin markets, “as our finger is most definitely on the psychedelic pulse." 

Shapiro also says some commencement dates have effectively been pushed back for planning and outlook perfecting purposes. 

“Red Light is clearly a well-rounded and cautious company as it relates to careful spending and patient growth,” he said, adding the team is “very transparent and available” for shareholders reach on questions regarding the company’s brands, launches, the Peterborough farm, M&A activity, and the novel psilocybin microdosing capsules for Australasian distribution. 

Of the latter, Shapiro assures the team would provide updates “in the very, and I mean the very near future!"

CFO David Ascott says Red Light’s financial position and liquidity remain strong, with the company holding enough capital to fund its ongoing business development and future growth and expansion plans “for the foreseeable future.” 

The team has reportedly been putting its excess cash to good use through government-issued GICs, “taking advantage of the current market interest rates to increase our return on investment related to these funds" says Ascott.

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Photo: Benzinga edit with photo by PublicDomainPictures and sergeitokmakov by Pixabay.