US-based cannabis retailer MedMen Enterprises Inc has posted its fiscal results for its financial Q3 (calendar Q1), which it counts as the 13 weeks to March 30, 2019.
The company’s revenues stood at $36.6m in the period, more than double the $14.3m it posted in the same three months of 2018.
MedMen posted a gross profit of $19.7m in calendar Q1 (fiscal Q3) 2019. Before biological asset adjustment, this number stood at $15.5m.
However, a punishing $61.3m ‘general and admin’ expenses bill pulled its finances into the red.
The firm’s operating loss in the quarter stood at $53.3m, compared to a $15.2m op loss in the prior year quarter.
Its net loss in calendar Q1 2019 was $63.1m.
For the quarter, the company reported an Adjusted EBITDA loss of $42.6 million, which decreased by 3% from the previous quarter.
The three months saw MedMen close on an acquisition of a non-operational retail license in San Diego, which has subsequently opened as MedMen Sorrento Valley.
It also closed on the acquisition of ownership interests in MedMen-branded retail store in Santa Ana, which was previously managed by the Company, but owned by a third party.
Other acquisitions included two cannabis retailers in Northern California – Buddy’s in San Jose and Sugarleaf in Seaside – as well as Arizona’s Kannaboost Technology Inc. and CSI Solutions LLC, collectively referred to as “Level Up”.
“Over the past nine years, MedMen has built the most valuable retail brand in the cannabis industry by taking advantage of the land grab opportunity and scaling with speed to secure as many flagship assets as possible,” said Adam Bierman, MedMen co-founder and chief executive officer (pictured).
“We continue to march onward towards profitability. The biggest driver for this phase of the business remains revenue, which continues to increase significantly with new store openings and same store sales growth. Where we are impressively ahead of schedule is in leveraging our scale to create greater operational efficiencies across the organization. Execution keeps improving while corporate SG&A is decreasing.”
MedMen is slated to open 15 new locations across the U.S. during the remainder of calendar 2019.
Of the planned locations, 12 will be in Florida, where MedMen is licensed for up to 35 locations.Cannabis Business Worldwide