GPO Plus Reports Revenue Increase to $2.4 Million, Net Loss Improvement in Latest Financial Results

GPO Plus, Inc. reported its financial results for the six months ending October 31, 2024, revealing a revenue increase to $2.4 million, up from $2.2 million in the same period last year. The company achieved a gross profit of $487,223, compared to $424,469 in the prior year, indicating a positive trend in profitability despite ongoing challenges. However, GPO Plus recorded a net loss of $1.17 million, a significant improvement from the $2.19 million loss reported for the same period in 2023. This reduction in net loss is attributed to increased gross profit and decreased operating expenses.

The company’s operating expenses for the six months ended October 31, 2024, totaled $1.47 million, down from $2.11 million in the previous year. This decline was primarily due to reduced professional fees and management salaries. Notably, stock-based compensation expenses also decreased significantly, from $585,849 in the prior year to $36,583 in the current period. The decrease in expenses contributed to the overall improvement in net loss.

In terms of operational metrics, GPO Plus reported a decrease in current assets, which fell to $253,880 from $564,499 as of April 30, 2024. This decline was driven by reductions in cash, accounts receivable, and inventory. Current liabilities increased to $4.93 million, up from $4.31 million, primarily due to higher promissory note payables and accrued interest. Consequently, the company’s working capital deficit widened to $4.67 million, compared to $3.74 million at the end of the previous fiscal period.

Strategically, GPO Plus has been focusing on expanding its distribution capabilities through the implementation of a new Direct Store Delivery (DSD) service model. This initiative includes the establishment of "Mini Hubs" supported by a Regional Distribution Hub in Lubbock, Texas, aimed at enhancing service quality and efficiency. The company plans to service approximately 1,000 to 1,500 retail locations through this network, which is expected to bolster sales and market presence.

Looking ahead, GPO Plus acknowledges the need for additional capital to sustain operations and fund future growth initiatives. The company has expressed intentions to seek equity and debt financing to address its working capital needs. However, management cautions that there are no guarantees regarding the success of these efforts, and the company may continue to face challenges in achieving profitability in the near term.