Goodness Growth Q1 Revenue Grows 22.1% YoY, Focus On Adult-Use Transitions In Core Markets

Author: Nina Zdinjak | May 16, 2023 09:10am

Marijuana operator Goodness Growth Holdings, Inc. (CSE:GDNS, OTCQX:GDNSF) reported Monday financial results for its first quarter ended March 31, 2023, with revenue of $19.09 million, compared to $15.64 million in the same period of 2022.

“Our first quarter results demonstrate a continuation of the trends we discussed last quarter, with revenue growth in each of our core markets and gross margin performance that has stabilized since the wind-down of our former outdoor operations in Arizona,” interim CEO Josh Rosen stated. “Fundamentally, our strategy this year aims to produce better and more affordable products for patients and consumers in Maryland, Minnesota, and New York, and we believe we are off to a solid start toward achieving these goals.”

Q1 Financial Summary

Net loss amounted to $8.41 million, or a loss of $0.07 per share, versus a loss of $14.57 million or $0.11 per share in Q1 2022;
Gross profit totaled $9.52 million, which compares to gross profit of $2.49 million in the corresponding quarter of last year;
The gross profit margin was 49,9%, compared to 15.9% in the first quarter of 2022.
EBITDA was a gain of $1.4 million, versus an EBITDA loss of $10.7 million in Q1 2022.
As of March 31, 2023, total current assets were $115.2 million, including cash on hand of $10.3 million, which does not include $1.7 million in net proceeds related to the company’s recently closed convertible loan facility. Total current liabilities were $96.4 million.

“We were also pleased to close on a new $10 million convertible loan facility earlier this month. Although access to capital remains challenging and expensive for cannabis operators, this loan provides us the flexibility to execute our plans for the year, which rest upon delivering meaningful operational improvements, driving quality and efficiency within our cultivation and manufacturing facilities, with a priority on being prepared for adult-use transitions in our core markets,” Rosen concluded.