The Green Organic Dutchman Holdings Ltd (OTCMKTS:TGODF) has announced its Q1 2020 financial results for the quarter that ended March 31, 2020. The company has also provided an update on its strategic execution plan.
TGOD reported 27% YoY growth in revenue in Q1
In the quarter, the company reported YoY revenue growth of 27% to $3.06 million. Revenue comprised of $2.4 million from hemp product sales in Europe and $0.66 million from cannabis products in Canada. This was mainly because of a limited product collection while it scaled Ancaster cultivation as well as processing capacity from the previous quarter. On March 30, 2020, the company received a license for its processing facility.
The IFRS required the company to cut the book value of its assets globally by $55.8M because of the COVID-19 pandemic for quarter-end impairment. This shows the uncertainty that the pandemic has brought that includes the temporary suspension of operating activities at the Valleyfield facility, reduced operations in Jamaica, and market demand evolution. However, non-cash impairment does not affect the operations of the liquidity of the company.
The company has been cutting costs, postponing the commencement of Valleyfield Facility operations as it concentrates on Ancaster cultivation. Most of the company’s Valleyfield employees have been laid off temporarily.
TGOD on the path to profitability
Brian Athaide, the CEO of the company, indicated that he was delighted regarding the resilience the TGOD team had shown during the pandemic. The company made safety a priority, which helped it to adapt quickly in its processes, helping to continue operations uninterrupted. The CEO asserted that the company had progressed in bringing new products to the market, and it is on track to post positive operational cash flow this year.
In October 2019, the company unveiled a Strategic Plan and has been working towards that through various decisions. It has charted a path to profitability in the near term while at the same time minimizing financial requirements. The company expects accelerated revenue growth in Q2 driven by various innovation initiatives.
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