Golden Leaf Holdings Ltd (OTCQB:GLDFF) has been expanding its retail operations and has enhanced its future fundamentals as a result. The company reported a year over year sales growth of 42% in the first quarter, mainly driven by its retail dispensaries which it acquired through the Chalice Farms. It plans to invest strategically in its retail business.
The cannabis company has been making strides to carve out an infrastructure that will permit the company to expand its operations across the cannabis industry.
Golden Leaf Holdings Ltd Growth Strategies
The company has opened a sixth Chalice Farms location and a seventh retail dispensary in Happy Valley, Oregon. The results from the new opening in Oregon were higher than Golden Leaf management expectations.
The CEO says, “Our retail operations are a key component of our growth strategy, and we are pleased to see our increased brand recognition among customers further entrench our position as a leading retailer in Oregon. We will continue to strategically invest in our retail strategy, adding stores in optimal locations.”
The company’s cash position of $22.1 million at the end of the quarter set its foothold to invest in growth opportunities. These opportunities include the establishment of cultivation capabilities in targeted markets along with expanding its presence in Nevada and California.
Golden Leaf continues enhancing its position for the potential demand from the legal adult-use market in Canada. It has commenced cultivation during the first quarter this year, and it is carrying out the growth cycle for its first two harvests.
“We expect to take advantage of value-creating acquisition and expansion opportunities, leveraging our strong human capital to execute on our growth strategy,” the CEO added.
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Golden Leaf Holdings Ltd Financial Numbers
The company’s investments in growth opportunities are translating into increased revenues. Its first-quarter revenue rose 41% over the year-ago period. It reported a positive net income of $8.1 million in the first quarter from a loss of 2.3 million in the year-ago period. The company, however, expects substantial growth in the following quarters amid its recent investments.
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