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California-based Gold Flora (OTC: GRAMF) reported strong revenue growth and expanded gross margins from its merger with TPCO, but the company still faced a loss for the fourth quarter and fiscal year ending Dec. 31, 2023.

The attributed the loss to higher operating expenses and one-time costs related to the deal.

Total revenue for 2023 rose 38.5%, from $65.7 million in fiscal year 2022 to $91 million, according to  regulatory filings. Wholesale revenue grew 14.4% over the year, from $10.9 million in 2022 to $12.5 million.

Retail revenue rose 43.4% from $54.7 million to $78.4 million, primarily due to additional retail locations from the TPCO acquisition.

Net loss nearly doubled from $21.5 million in 2022 to $42.7 million in 2023. The company reported positive adjusted EBITDA in the fourth quarter and improved its gross margin to 66%.

“Where other operators have experienced persistent challenges in California, our purpose-built and difficult to replicate footprint allows us to succeed and grow scale consistently,” CEO Laurie Holcomb said in a statement.

The company closed underperforming delivery locations and sold an unprofitable retail license, which temporarily affected revenue but enhanced long-term profitability.

Gold Flora said it completed the business combination and integration of “legacy operations,” resulting in approximately $30 million in annualized cost savings. The company also invested in expanding its cultivation facilities and launched a new product brand designed to appeal to high-volume consumers.

Holcomb noted that the majority of Gold Flora’s revenue now comes directly from its owned brands, “augmented by our retail store network, which is based in highly desirable, limited license locations.”

“The work we undertook and investments we have made in 2023 were crucial to ensure we began 2024 ready to capitalize on the substantial untapped opportunity here in California and achieve our goal of generating positive cash flow this year,” she said.

The post TPCO deal boosts Gold Flora’s sales, margins appeared first on Green Market Report.

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via www.KahliBuds.com

Adam Jackson, KahliBuds, 420GrowLife