Green Organic Dutchman’s Losses Narrow as Revenue Rises in Q1



TGOD Q1 earnings

Green Organic Dutchman Holdings (TGOD) (TGODF) reported its first-quarter earnings yesterday after the markets closed. It reported revenues of $2.4 million in the quarter, up 28% sequentially. HemPoland accounted for most of TGOD’s revenues. The company began sales in Canada from its Hamilton facility at the end of the first quarter. However, the revenues were not material. According to TGOD, most of the orders that it booked in March were shipped in April, and thus the revenue will be recognized in the second quarter.

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Losses narrow

TGOD reported a net loss of $14.1 million in the first quarter. However, the net loss was lower by $4 million as compared to the sequential quarter. The company attributed the lower loss to “increasing sales in Poland and stronger net results from Epican in Jamaica rolling into TGOD’s financials” and a “disciplined approach to operational costs.”

Most of the cannabis players are currently reporting losses. Charlotte’s Web Holdings (CWEB) (CWBHF) and Village Farms International (VFF), however, posted positive net income in the most recent quarter.

Recent announcements

Yesterday, TGOD also announced that it has received approval from Health Canada to expand operations at its Hamilton facility. On May 13, TGOD announced that it has reached an agreement with Mediakos “to be the exclusive distributor of CannabiGold, its premium hemp CBD brand, for the German pharmacy market.” TGOD has received a “buy” or higher rating from three analysts, while one analyst has rated it as a “hold.” One analyst has a “sell” or equivalent rating on TGOD. The stock’s mean consensus price target of 6.52 Canadian dollars represents a potential upside of 70.2% over yesterday’s closing prices.


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