US-based cannabis retail empire MedMen Enterprises Inc. has announced unaudited systemwide revenue figures for its fiscal fourth quarter 2019, which ended on June 29, 2019.
The company also provided an update on several corporate initiatives, including efforts to optimize SG&A and raise capital, plus the status of its pending PharmaCann transaction and retail store expansion.
For the fiscal fourth quarter 2019, systemwide revenue across MedMen’s operations in California, Nevada, New York, Arizona and Illinois, excluding pending acquisitions, totaled US$42.0 million (C$55.5 million), up 15% sequentially.
This growth represents the company’s third consecutive double-digit sequential revenue increase since going public in May 2018.
The figure was more than double the $20.6 million in systemwide revenue MedMen posted in its Q4 of the prior year.
For the fourth quarter, gross margins across retail operations were 50%, compared to 51% in the previous quarter.
Pro forma systemwide revenue, including sales from pending acquisitions that have not yet closed (including that of PharmaCann), totaled US$61.3 million (CA$81.0 million) for the quarter.
This pro forma revenue figure is based on 37 retail stores that were operational at the end of the quarter and includes the recently announced pending acquisitions of operational retailers in Long Beach, California and Vallejo, California.
“Q4 2019 was another quarter of solid execution for MedMen and a very strong end to our fiscal year.”
Adam Bierman, MedMen
MedMen says it is now on track to achieve an approximately 30% overall reduction in corporate SG&A from the December 2018 quarter, surpassing initial target reduction of 20%.
The company plans to announce its full financial results for fiscal 2019 after market close on October 28, 2019.
Through the recent awarding of licenses and assuming completion of pending acquisitions, MedMen is licensed for 92 retail stores across the U.S., including 17 retail stores in California.
“Q4 2019 was another quarter of solid execution for MedMen and a very strong end to our fiscal year,” said Adam Bierman, MedMen co-founder and chief executive officer.
“Throughout 2019, we broadened our geographic footprint through strategic acquisitions, which leverage our existing corporate infrastructure as we enter new markets. Following the closing of pending acquisitions, we will be licensed for up to 92 retail locations across 12 states, and there is tremendous opportunity ahead to turn the balance of our retail licenses into revenue-generating storefronts.”
The company’s 11 operational retail locations in California reported a combined US$27.4 million (CA$36.2 million) in revenue for the fourth quarter, an increase of 10% sequentially. Revenue by quarter for Fiscal 2019 is summarized in the table below.
MedMen confirmed it has also completed the previously announced amendments to its US$250 million senior secured credit facility arranged by Gotham Green Partners. These amendments offer the Company greater access to capital by providing MedMen the ability to draw down the full remaining balance of the Facility without any trading price hurdles.
MedMen is a cannabis retailer with operations across the U.S. and flagship stores in Los Angeles, Las Vegas and New York.Cannabis Business Worldwide