California Cannabis Co. Gold Flora Reports 150% YoY Increase In Q1 Gross Profit, Trims Loss Sequentially

California cannabis company Gold Flora Corporation (Cboe Canada: GRAM) announced its first quarter financial results Wednesday for the three months ended March 31, 2024.

“Our Q1 2024 results reflect the work we have done to scale our operations to leverage the solid foundation we have built and realize the significant benefits of our vertical integration,” said CEO Laurie Holcomb.

Q1 2024 Financial Highlights

• Total revenue was $32.2 million, representing a 13% sequential growth and 105% year-over-year.
• Gross profit was $10 million, representing a 31% gross margin, compared to $4 million in the same quarter of fiscal 2023, representing a 26% gross margin and $13.2 million in the prior period, representing a 46% gross margin.
• Adjusted gross profit of $17.4 million, representing a 54% adjusted gross margin compared to $6.9 million in the same quarter of fiscal 2023, representing a 44% gross margin and $18.7 million in the prior period, representing a 66% gross margin.
• Net loss was $13.7 million, compared to $9.3 million in the same quarter of 2023 and $42.2 million net loss in the previous quarter.
• Adjusted EBITDA came in negative at $1.8 million, compared to an adjusted EBITDA loss of $150 000 in the same quarter of last year, and a positive adjusted EBITDA of $105 000 in the prior quarter.
• Cash used in operating activities reduced to $4.4 million from $6.4 million in the fourth quarter of 2023, a sequential improvement of 31.3%.
• Cash and cash equivalents totaled $14.2 million as of March 31, 2024.

Gramlin Brand And Outlook

Gold Flora significantly expanded its cultivation operations with the introduction of the Gramlin brand.

The expansion increased the canopy space to 107k square feet, a more than double increment from the previous year. The launch of Gramlin, targeting high-volume consumers with affordable pricing and trendy packaging, aims to elevate sales of in-house products from 22% to 30%, as Benzinga's Nicolás Jose Rodriguez highlighted in his recent recap of cannabis analysts' reports.

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"Our ability to scale and rapidly act on market opportunities is one of our crucial competitive advantages and our latest brand launch, Gramlin, is a tremendous example of its potential," Holcomb said. "We were able to identify an underserved consumer demographic leveraging our retail insights and rapidly bring Gramlin to market in March at an unmatchable price point utilizing fresh strains grown at our indoor facilities."

Gold Flora's shares traded 1.61% lower at $0.305 per share at the time of writing on Wednesday.