Cannabis retail chain MedMen has revealed its financial results for the 13 weeks to December 29 last year – its fiscal Q2.
As you can see below, across the last six months of calendar 2018, the company posted $51.4m in revenues, up by over ten-times on the $4.9m it posted in the equivalent six months of 2017.
The firm’s operating loss in the last half of last year was $125.1m following heavy investments in expansion.
Its net loss in the period stood at $131.1m, although only $31.2m of this was attributable to MedMen Enterprises Inc.
In the final quarter of 2018 (fiscal Q2), MedMen increased revenue sequentially by 39% to $29.9 million.
It says it also continued to perform favorably in California with eight retail locations reporting a combined $23.7 million in revenue, representing a 28% quarter-over-quarter increase.
MedMen’s quarterly gross profit margin improved to 53% from 45% in the prior quarter due to unrealized gain on changes in fair value of biological assets.
Its key developments in the quarter included signing a definitive agreement in December to acquire PharmaCann in an all-stock transaction. The transaction will double MedMen’s geographic footprint to 12 states, which account for over 50% of the US population.
The firm also recently expanded its California footprint into Northern California through the signing of definitive agreements for the acquisitions of a retail license in Emeryville and a microbusiness license for retail, distribution, cultivation and manufacturing cannabis onsite in San Jose.
“Our strong second quarter results support MedMen’s commitment to drive strong retail and sales performance, while efficiently scaling the Company and executing on our growth strategy.”
Adam Bierman (pictured)
“Our strong second quarter results support MedMen’s commitment to drive strong retail and sales performance, while efficiently scaling the Company and executing on our growth strategy,” said Adam Bierman, MedMen chief executive officer and co-founder.
“As we emphasized last quarter, we are in a new phase of growth, one focused on continuing to operationalize our industry-leading retail footprint and increasing our profitability. We are confident in the team we’ve built to drive our success.”
With approximately 7% market share in California, the largest cannabis market in the U.S., MedMen is planning to open 16 new locations across the U.S. in calendar 2019.
Of the 16 new locations, 12 will be based in Florida, where MedMen is licensed for up to 30 locations.
Additionally, four retail sites in Florida are expected to open in the next 90 days in the following locations: Key West, Orlando, West Palm Beach, and St. Petersburg.Cannabis Business Worldwide