TPCO Holding Corp. (NEO:GRAM.U) (OTCQX:GRAMF) released Tuesday its
second-quarter financial results with revenue of $27.4 million, missing the Yahoo Finance Average analyst estimate of $33.23 million. Compared to the same period of 2021, revenue declined 49% from $54.2 million.
Q2 2022 Financial & Operational Highlights
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Net loss and comprehensive loss for Q2 2022 was $30.5 million compared to net income of $5.82 million in Q2 2021.
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Gross profit for Q2 2022 was $6.6 million, or 24% of net sales, which compared to gross profit of $4.78 million in the same period of 2021.
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Adjusted EBITDA was a loss of $18.4 million, compared to adjusted EBITDA loss of $13.12 million in the corresponding period of last year.
"Our team remains focused on our business transformation, and this quarter's results are an early indication that our profitability improvement plan is working," stated Troy Datcher, chief executive officer, and chairman of The Parent Company. "As anticipated, our efforts to maximize the contributions from our omni-channel retail opportunities and minimize our exposure to the California wholesale market have significantly shifted our revenue mix. While this decision compressed topline sales, it drove solid Q2 gross margin of 24% compared to 9% in the prior year period as our omni-channel retail revenue grew 60% to account for 69% of our net sales in the quarter."
Subsequent Events
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Expanded into east coast market with exclusive brand licensing and cultivation production agreements in Maryland with Curio Wellness.
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Initial brands to be introduced under the terms of the Licensing Agreement include Monogram, Caliva, Mirayo by Santana, and other TPCO owned brands, in a variety of product form factors including jarred fresh flower, pre-rolls, premium vapes, and infused gummies. Some of the products will feature signature strains of cannabis cultivated by Curio in collaboration with The Parent Company. The Parent Company brands are expected to initially be available at Curio's Far & Dotter dispensaries, with broad wholesale distribution to dispensaries across the State to follow.
Update on Long-term Profitability Initiatives
As previously announced, the company has begun the process of implementing a variety of strategic initiatives that are primarily focused on the preservation of its balance sheet while strengthening its omni-channel retail business. Since the announcement of this initiative, the company has taken meaningful steps to reduce costs, drive efficiencies, and accelerate its path to sustainable, long-term profitability.
The Price Action
The Parent Company shares were trading 1.84% lower at 80 cents per share at the time of writing Tuesday morning.
Related news:
Cannabis Companies Nabis And The Parent Company Forge Exclusive Distribution Partnership
The Parent Company To Enter Maryland Cannabis Market Via Exclusive Partnership With Curio Wellness
Photo: Courtesy of CRYSTALWEED cannabis on Unsplash
