Planet 13 Faces 'Challenging Environment' And Other Quarterly Highlights From Harborside, Bluma, 4Front
Here’s a summary of the latest earnings reports in the cannabis industry:
Planet 13 Sees 35% YoY Revenue Drop, Record Sales
On the heels of receiving a new retail license, Planet 13 Holdings Inc. (CSE:PLTH) (OTCQB:PLNHF) reported a 35% year-over-year drop in revenue. It amounted to $10.8 million in the second quarter of 2020.
The Las Vegas-based company also disclosed an adjusted EBITDA loss of $700,000 for the quarter ending June 30 versus an adjusted EBITDA of $2.7 million for the corresponding period of 2019.
It also posted a net loss of $4 million during the quarter, compared to a net loss of $900,000 in the same period last year.
Planet 13 Co-CEO Larry Scheffler called the second quarter a “challenging environment” for Nevada businesses, adding he was “pleased with the way the team worked under these conditions to add new customers and preserve capital.”
July and August were the company's highest sales months to date, generating revenue of $15.1 million.
Bluma Wellness Revenue Jumps 190% In Q2
Medical cannabis company Bluma Wellness Inc. (CSE:BWEL) saw a 190% increase in revenue in the second quarter of this year, reaching $2.12 million.
Over the same period, it achieved an AAP-adjusted margin of 60%.
The Toronto-based company also reported a net loss of roughly $7.9 million for the second quarter and a loss of around $15.4 million for the first six months of 2020.
In addition, the total expenses for the quarter amounted to approximately $7.5 million and $16 million for the first half of this year.
“Bluma Wellness is pleased to report such robust and efficient quarter-over-quarter growth in the second quarter of 2020, anchored by the power of our innovative delivery network and curbside pick up segments,” said Monday the company’s CEO Brady Cobb.
Meanwhile, in June, Bluma’s subsidiary — One Plant Florida — has cut the ribbon on its fourth retail location in the state.
4Front Revenue Hoovers $12.7M In Q2, Achieves Positive Operating Cash Flow
4Front Ventures Corp. (CSE:FFNT) (OTCQX:FFNTF), which recently debuted in Massachusetts by launching Mission dispensary in Georgetown, revealed Monday its systemwide pro forma sales (excluding divested non-core assets) amounted to $19 million in the second quarter.
That’s a sequential increase of 1.3%.
The Phoenix, Arizona-based company achieved positive operating cash flow during the period, as previously announced.
Meantime, IFRS sales hovered around $12.7 million.
Adjusted EBITDA for the quarter was a loss of $0.4 million.
4Front also said that its expansion endeavors in both Massachusetts and Illinois production facilities are underway.
“We enter the second half of 2020 with a focused business model, streamlined cost structure and fortified balance sheet,” noted the company’s CEO Leo Gontmakher, set to “accelerate growth across our core markets of Washington, Illinois, Massachusetts, Michigan, and California.”
Harborside Generates $16.1M In Revenue, Adjusted EBITDA Remains Positive
For the quarter ended June 30, the company's gross revenue amounted to $16.1 million, up by roughly 29% year-over-year.
It's total gross profit (excluding excise taxes or biological asset adjustments) totaled $8 million in the second quarter, compared to approximately $5 million in the corresponding period of 2019.
In addition, the total gross margin (non-IFRS measure) was 49.8% for the quarter.
The company reported an adjusted EBITDA (non-IFRS measure) of $642,025, versus a loss of around $1.7 million in the second quarter of last year.
"Our second-quarter results are a reflection of the improvements we began implementing earlier this year, which have allowed us to leverage the strength of our operations to accelerate our path to profitability," said Peter Bilodeau, chairman, and interim CEO.
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