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The Green Organic Dutchman Holdings Ltd. (GRODF)

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  • J
    The Green Organic Dutchman Holdings Ltd. (OTCQX:TGODF) Q1 2022 Earnings Conference Call May 26, 2022 10:00 AM ET....

    Sean Bovingdon/
    The progress, the momentum built in fiscal 2021 has carried forward into the first quarter of 2022, including another record month in March. Our focus on quality and consistency have continued to drive brand value, and the solid revenue growth along with continued cost cutting initiatives, an increase in the revenue mix towards premium flower and an increased utilization of our Ancaster facility, have improved our gross margin again this quarter. In a challenging and highly competitive environment, we've been successful at continuing to grow revenue and our retail distribution by investing in relationships with retail cannabis chains. Operationally, our strategy and execution has repeatedly delivered quality product to consumers and demand has outpaced production while we remained mainly insulated from the pricing pressures our peers have been facing. Meanwhile, our yields have been consistently strong repeatedly at or above a 100 grams per square foot of canopy while maintaining the THC levels always above 22% with some strains reaching as high as 28% in the TGOD premium flower category.

    Our quality high THC premium flower with strong terpene profiles, such as our Sugar Bush and Maple Kush strains and our newly launched Cherry Mints, continue to be the key drivers of our growth. We continue to develop and launch new premium strains to strengthen our leadership position in the premium flower category. In response to this growing consumer demand, we commenced our first harvest from our Valleyfield facility earlier this week and are excited to be able to offer high quality Quebec grown product to the market. Annually that Valleyfield will produce an additional 2,500 to 3,000 kilos of flower, while it still remains the production facility for our portfolio of hash products. In Q1, we also launched our highly Dutch six month Oak Barrel Aged Hash in the Quebec market. It'll be available in Ontario shortly and we expect Newfoundland and Manitoba availability to follow. We launched TGOD pre-rolls for our Rockstar Tuna and Sugar Bush strains in January. Based on the early success, the TGOD pre-rolls will be available in Cherry Mint and Maple Kush in the upcoming month. We also added the Cruuzy Supercharged Duubyz, combining the flavorful Indica flower and rosin to create a unique consumer experience. We are encouraged by the stronger than expected consumer demand for these pre-rolled offerings.

    So our three strategic initiatives have continued to drive demand and expand distribution, that's thanks to our commitment to the TGOD promise to deliver consistent high quality, high THC products, our focus on growing key retail chain penetration and our dedicated sales model. We've been able to continue the momentum from Q4. These three initiatives will continue to be the foundation of our growth strategy for the remainder of 2022. We are pursuing opportunities for additional cultivation for 2023 to meet the strong demand for our products, in particular, for our premium flower. We continue to have strong conviction in our potential to achieve significant growth quarter over quarter as we remain focused on the quality and consistency, as well as continued cost discipline and execution. We are pleased with our progress and continue to build TGOD into a profitable, sustainable and agile cannabis company that importantly is growing faster than the legal market in Canada.
  • D
    CEO of Canopy Growth, Klien is commenting on his company's very poor performance - 25% decrease in revenue from a year ago. He indicated that the reason for the drop in revenue was the company's change in focus from their value brands to their premium brands. Now TGOD is also doing this (as noted in the cc yesterday and the great reporting by TTnt) but yet their revenue increased 93% year over year. Please let that sink in for a moment. I think this is called "TGOD eating the lunches of other LPs". Have a great weekend all!
  • M
    A few reflections on the earnings report. The revenue number was good my almost every measure, I had hopped that we’d see a number near 15, due to new SKUs, larger number of stores, increasing popularity (e.g., demand) and the shift to higher margin flower. Still, the steady progression is right on track. Acosta’s efforts are showing up strong, costs continue to be very well managed (10% reduction by quarter for the next few and then stable from year end - that’s very impressive cost containment. The organic niche is permitting pricing power, where commodity stains down market are unable to protect margin with price - thankfully we have that moat. We’re late in May and Sean is stated unequivocally that EBITDA positive will happen in June. That means 5 million or more in the month - a step function higher in run-rate - that’s noteworthy. Access to capital is more than sufficient including cash on hand and the revolver - he answered Tammy’s question by pointing out that retained earnings would be the first source of working capital - that’s exciting to consider, after all the long term investors have endured. Margins have improved as the market has moved to high quality flower; that’s certainly helpful to know and to consider as product mix becomes a bigger part of the analyses.
    I’m happy to see more and more people on this board ask for civility - there’s enough venom and poison in the world, and in our countries, even our families. This should be a place, of civil discourse, I know that in many cases I learn more from people who differ with my opinion than those that agree with me.
  • J
    Key takeaway from the Conference call. TGOD is growing it’s market share, especially of it’s premium flowers, while other companies are losing that market share to TGOD. (Check other companies News out today…)The pre-rolls have been a hit. New pre-roll products will be released soon per Sean.
  • T
    "We remain on track to achieve breakeven EBITDA on a monthly basis in Q2 and are pursuing opportunities for additional cultivation for 2023 to meet the strong demand for our products, specifically our premium flower. We continue to have strong conviction in our potential to achieve significant growth quarter over quarter, as we remain focused on quality and consistency, as well as continued cost discipline"

    On track on a monthly BE EBitda in Q2.
    Additional cultivation for 2023.

    All good sign.

    Greater sales on their premium flowers mean greater margins means getting to Positive EBitda faster. I see this happening right now in May.
  • H
    As a serious long term investor in TGODF I'm quite happy to see our current financial results and what we can expect in the near future. Time is on TGODF's side and that's fine with me!
  • J
    We are in a different boat than some of these other large LPs that are getting hit today. We are aggressively taking marketshare. Thanks to Sean and his vision of cost-cutting and store to store lobbying for Acosta and other means. He literally saved TGOD by selling Valleyfield and leasing back. Now we are about to flourish. Luckily we are not fighting our way to the bottom based on price. We have a niche here in organic. We are on the upswing. See you all at the top.
  • Q
    Q over Q
    pure optimism in this PR. we can all sense it before this, now we can clearly see mgmt knows... we have made the comeback, and we are set to do more than our peers think. financial discipline, quality products, already loooking into more production for 2023. i bet west-coast will be one of them. this is the buisness tgod must know well on the homefront before doing the same thing in the USA. Love the company strategy here.
  • J
    The Green Organic Dutchman Starts Year with Record Quarterly Revenue, Reports First Quarter 2022 Results...

    Achieved record quarterly net revenues of $10.58 million, a 96% increase from Q1 2021, and a 12% increase from Q4 2021
    Improved gross margin (before changes in fair value) to 35% from 32% in Q4 2021, and from 1% in Q1 2021
    Continued to decrease costs, with general and administrative expenses of $3.92 million, a 14% decrease versus Q4 2021
    Subsequent to March 31, 2022, amended the secured revolving facility (the "Revolver Loan"), increasing the term portion by $4.0 million to $24.0 million
  • K
    10.58 million net. Margins increased to 35%, operational costs down from last quarter.

    I would have liked a higher revenue # but when margins are the best in the business and costs are going down, the future is looking better and better all the time.
  • B
    As more and more stores are added to distribution, there will be more demand for premium brand allowing them to shift more production away from value brands and continue to improve margins
  • J
    Superrrrr surprising to see price action go up and down after this amazing ER, bankruptcy has been out of the table for a long time now, time for investors to wake up i guess.
  • J
    The Green Organic Dutchman Starts Year with Record Quarterly Revenue, Reports First Quarter 2022 Results...
  • J
    The shares traded today of approximately 553,000 is .00073 of 1% of the outstanding shares which caused the stock price to go down by approximately 2%. For anyone that’s invested here for long-term, that’s quite meaningless.
  • O
    Since good financial news has been reported for q1 and q2 looks to be better, the shorts need to get back to work so that all the longs can add more shares at deep discount prices. I am looking for lower stock prices to add to current positions.

  • W
    The reason I believe Canopy growth is going down cause they started out wrong.
    They were the first big selling weed.But, Recreational weed and lots of it.Not medical weed or premium custom flower.
    Just recreational. They just now are getting into medical.
    Kind of late on the train.
    As far as auroa goes,all they worried about was exspanding and buying up companies.Not selling weed.That’s where their money went and their still buying company’s.
    These smaller company’s like TGODF and even FLOWR are doing the right thing.
    Just because there small doesn’t mean they won’t be successful.First of all, there not greedy.Second of all,there concentrating on one thing and one thing only.There product.
    They made it and now they are fine tuning and Enchancing it of the highest degree they can.Now there selling it and distributing it in as many locations and or country’s as they can.
    GEE? I wonder why it’s in demand.Not just demand,but “BIG DEMAND.”
  • W
    I see this company transforming into a powerhouse to be reckon with!
    Organic and high thc is in very high Demand!
  • J
    All good news. They will be closing on HemPoland soon too. Revenue is increasing. Costs are going down. Additional plantings are occurring. They are growing.
  • J
    I’m excited

    I think they probably just turned the corner in the last month where they are making profit over expenses. The press release was for January February and March 2022 where they were right on the cusp of covering expenses for the first time. I would bet in April and May they finally entered profitability for the first time in a decade.
  • T
    I don't believe any and I mean any CEO on their cc would say, all the weed we grow is all pre-sold. That is confidence.

    Not even canary, dumboli. You wish it would. Oh wait, canary only uses 1/3 of VF I assume. I think that includes tgod area in VF.