Gold Flora Corp. (GRAM), a vertically integrated California cannabis company, released its financial results for the second quarter of 2024 on Thursday. The company reported a revenue of $31.64 million, a substantial increase from the $14.96 million reported in the same period last year. However, the net loss for the quarter came in at $23.95 million, compared to $14.1 million in the second quarter of 2023. Adjusted EBITDA also reflected a loss of $1.97 million, a significant increase from the loss of $0.28 million in Q2 2023. Despite the decrease in profit, the company reported a rise in gross profit, reaching $7.25 million, up from $3.94 million in Q2 2023.
Gold Flora’s revenue, while up significantly year-over-year, saw a slight decrease of 2% from the previous quarter. The company’s gross profit also experienced a notable decline of 28%, totaling $7.25 million, resulting in a gross margin of 23%. However, adjusted gross profit reached $18.17 million, resulting in an adjusted gross margin of 57%, an increase from the 54% recorded in Q1.
In terms of operations, Gold Flora achieved a 14% improvement in flower harvest yields, a testament to recent cultivation investments. The company also successfully increased first-party product revenue to 30% of total retail sales. Gold Flora continues to expand its product portfolio, notably with the Gramlin brand, now the 5th fastest-growing cannabis brand in California.
Despite the challenges, Gold Flora CEO Laurie Holcomb expressed confidence in the company’s future, citing its strong market positioning and cultivation capabilities as key advantages. “As one of the largest indoor cultivators in the state, we have a unique competitive advantage that sets us apart from the vast majority of other operators in California,” stated Holcomb in a press release. “We can quickly adjust our operations to meet current market demand, and at scale, enabling us to offer attractive price points and excellent products. With our cultivation investments complete and subsequent harvests now demonstrating the improved yield and product quality that we can generate, we are incredibly well positioned to execute on the opportunity ahead of us as we move through the second half of the year.”
Gold Flora’s commitment to expanding its cultivation footprint demonstrates its focus on strengthening its competitive edge in the California cannabis market. At the time of this writing, GRAM’s shares were trading 5.67% lower at $0.0915 per share.
