The Green Organic Dutchman Reports Third Quarter 2022 Results

Published: November 25, 2022

The Green Organic Dutchman Reports Third Quarter 2022 Results

The Green Organic Dutchman Holdings Ltd., a sustainable global cannabis company and leading producer of premium cannabis brands, reports its financial results for the quarter ended September 30, 2022. These filings are available for review on the Company’s SEDAR profile at All financial information is provided in Canadian dollars except where otherwise indicated.

“In Q3 2022, TGOD continued its focus on quality and execution,” commented Matt Milich, CEO of TGOD. “The consistent improvements in TGOD’s operations and product offerings paved the way for the transformational merger with BZAM that was concluded after the quarter end.  The merger is expected to more than double net revenue relative to TGOD on a standalone basis while substantially reducing duplicate costs. In fact, the integration process and realization of savings is already well underway as we drive hard toward our positive EBITDA and free cashflow goals in the course of 2023.”

Third Quarter 2022 Financial Highlights:

Three months ended

Nine months ended


Sept 30,

Sept 30,


Sept 30,

Sept 30,


Net Revenue



36 %



55 %

Cost of sales



81 %



58 %

Gross profit before changes in FV of biological assets



(72 %)



43 %

FV changes in inventory and biological assets



(5 %)



235 %

Gross profit



(61 %)



103 %

Gross profit %

10 %

35 %

43 %

33 %

The Company:

  • Achieved quarterly net revenues of $9.92 million, a 36% increase from Q3 2021. The increase is due to the launch of new premium flower strains (Cherry Mints and Maple Kush), the launch of new pre-roll SKUs, and the Company’s Highly Dutch Organic™ flower continuing to gain traction in 2022.  With additional sales efforts undertaken to provide direct store support with budtender and consumer education, in addition to the new listings accepted in key markets throughout 2022, the Company achieved significant increased revenues in key markets.
  • Year to date 2022 net revenues of $32.1 million, reflecting growth of 55% versus the same period in the prior year.
  • Gross profit before changes in fair value of biological assets (“direct gross profit”) was $596 thousand for Q3 2022, representing a 6% gross profit margin before changes in fair value of biological assets reflecting a provision of $1.7 million that was made in Q3 2022 for potential obsolescence of inventory. Normalized direct gross profit without this provision would be $2.3 million, or 23%.
  • Gross profit, after fair value adjustments, was $997 thousand for Q3, 2022, representing a 10% gross profit margin reflecting the $1.7 million inventory provision and a fair value adjustment on that provision of $4.3 million. Normalized gross profit without this provision would be $7.0 million or 71%. For the nine months ended September 30, 2022, gross profit was $13.9 million, being 103% higher than the prior year, reflecting the improved revenues.
  • General and administrative expenses (“G&A”) were $4.19 million for the three months ended September 30, 2022, a 34% decrease in comparison to $6.37 million for Q3 2021.  In comparison to Q2 2022, G&A expenses decreased by $0.71 million which is primarily a result of Company’s efforts to decrease costs including the reduction of overhead personnel.

Key Initiatives:

  • The TGOD brand continued to increase the distribution of several SKUs across Canada, including our well received Organic Maple Kush, Organic Sugarbush and Organic Cherry Mints SKUs. Building on the pre-roll category, the brand also rolled out Organic Maple Kush 3 x 0.5g pre-rolls in Ontario during the quarter. The Highly Dutch Organic brand also had a notable quarter, including the launch of a new SKU, Amsterdam n’Rosin 0.5g vape. Additionally, the brand’s strong Afghan Black and Marrakech Gold hash SKUs both expanded from 1g/unit to 2g/unit offerings. This size adjustment started in Alberta & Manitoba and will roll out to all provinces. The Cruuzy portfolio featured the newest SKUs for the organization. Additionally, the Cruuzy portfolio launched 3 new SKUs each in Ontario and Alberta.
  • On September 6, 2022 the sale of HemPoland was completed with the purchaser paying a total of $1.35 million in cash.  A loan payable to HemPoland by the Company, of $5.46 million was also forgiven. This brought the total proceeds to $6.81 million.
  • Subsequent to quarter end, on November 3, 2022 (“Closing”), the Company completed the acquisition of BZAM Holdings Inc., a corporation incorporated under the laws of the province of British Columbia (“BZAM”), from its sole shareholder BZAM International Inc. (“BZAM Shareholder”).  TGOD paid a purchase price as follows:
      1. A nominal cash payment of $100 and the issuance on Closing of an aggregate of 655,227,815 common shares, which constitutes on a pro forma basis immediately following Closing, 49.5% of the aggregate number of common shares issued and outstanding immediately following the Closing (the “Closing Shares”). For purposes of calculating the Closing Shares, the determination of the issued and outstanding common shares as of immediately following the Closing did not take into account (i) any securities issued by the Company that are convertible into, or exercisable for common shares; or (ii) the 85,714,286 common shares (the “Milestone Escrow Shares”) held in escrow pursuant to a certain indemnity escrow agreement dated November 17, 2021, between the Company, Computershare Trust Company of Canada, and certain securityholders of the Company related to the acquisition of Galaxie; and
      2. Following the release from escrow on December 31, 2022, of the Milestone Escrow Shares, the Company shall issue such number of common shares equal to 49.5% of the aggregate number of Milestone Escrow Shares not returned to treasury.

About The Green Organic Dutchman Holdings Ltd.
The Green Organic Dutchman Holdings Ltd. is a multi-licensed Canadian cannabis producer with a focus on branded consumer goods, innovation, quality, consistency, integrity and transparency. The Company is committed to cultivating a better tomorrow by producing its products responsibly, with less waste and impact on the environment. In Canada, TGOD serves the recreational market with a brand portfolio including BZAM, The Green Organic Dutchman, -ness, Highly Dutch Organics, TABLE TOP, Cruuzy and partner brands Dunn Cannabis, FRESH, Superflower and Snackbar.  TGOD operates facilities in BC, AlbertaOntario and Quebec, as well as retail stores in Winnipeg, Manitoba and Regina, Saskatchewan, and is rapidly expanding its offerings to a growing number of consumers across Canada. For more information on The Green Organic Dutchman Holdings Ltd., please visit and

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