TPCO Holding Corp. (NEO: GRAM) (OTCQX: GRAMF) reported sales of $20 million in the quarter an increase of 2% from the third quarter, but a drop of 19% from last year’s sales of $24 million. The quarter’s net loss was $41 million, an improvement over the third quarter’s net loss of $134 million, and last year’s net loss of $53 million for the same time period.
The company announced its preliminary (unaudited) financial results for the fourth quarter and fiscal year ending Dec. 31, 2022.
For the full fiscal year, sales hit $83.6 million, a 4.6% improvement over fiscal year 2021’s sales of $79 million. The fiscal year reported a net loss of $237 million, also an improvement over 2021’s net loss of $498 million.
This comes after the company made massive changes in its organization during 2022.
“Transforming our business to emerge as a leader in California, as well as a world class brand builder has been our guiding principle throughout 2022,” said Troy Datcher, chief executive officer and chairman of The Parent Company. “To achieve this, we took decisive action and focused the organization company on our strongest and most profitable assets. This focus improved our cost structure, with additional benefit to be realized as we move through the year, significantly improving annual gross margin to 30% compared with only 16% for 2021.”
Datcher continued, “Earlier this year we announced, in partnership with Roc Nation, that we have restructured our strategic arrangement to significantly reduce our financial commitments and eliminate future dilution for our shareholders while maintaining our successful collaboration.”
TPCO said it expects that the financial impact of the strategic decisions made during 2022 will take effect within the first half of 2023.
Last month, TPCO announced a merger with Gold Flora in an all-stock deal. The proposed combined company is expected to be strongly positioned as a top 10 brand portfolio by revenue in California, with 20 retail stores by the end of 2023, 12 house brands and broad state-wide coverage. The combined company is expected to achieve between $20 million-$25 million annualized cost savings, through benefits such as enhanced scaled and supply chain optimization.
TPCO also launched Cruisers, a new all-FUN, no-frills brand that puts consumers first and offers everyday value on premium cannabis products. Cruisers combines the company’s existing brands, Fun Uncle and DELI, streamlining these top-performing products into a single consumer-centric destination.