MedMen Shares Slightly Up On The Best Quarterly Net Loss Result Since It Went Public
MedMen Enterprises Inc. (CSE:MMEN) (OTCQX:MMNFF) reported Tuesday its third-quarter fiscal 2021 financial earnings with net revenue of $31.7 million, compared to $45.9 million in the same period of fiscal 2020.
The cannabis retailer further disclosed total net revenue from its operations in California, Arizona, Nevada, Illinois, New York and Florida of $37.8 million, up 8.2% from the previous quarter.
Its gross margin rate was 42% in the quarter as compared to 53% in the second quarter.
The California-headquartered company also posted a net loss of $9.8 million, which took into account $32.2 million in tax provision benefit, versus a net loss of $68.9 million in the second quarter that counted for $24 million of tax provision expense.
According to MedMen, this is the company’s best net loss results since it went public.
Its retail adjusted EBITDA was $8.5 million, compared to $6.0 million in the same quarter of fiscal 2020, for a 22.5% margin.
On March 27th, MedMen held assets under management of $487.3 million, counting cash and cash equivalents of $21.3 million.
“The past quarter was defined by the reopening of retail stores, accelerated momentum in our turnaround plan and a shift towards growth,” Tom Lynch, chairman and CEO of MedMen stated. “As predicted, California began to rebound strongly as capacity restrictions in California fell away, with same-store sales up 2.3% quarter-over-quarter and April same-store sales up 11.9% over March.
“Over the next several quarters we plan to both accelerate our growth and move closer to profitability as we leverage our national brand recognition into opening new stores in Florida, California, Massachusetts and Illinois,” Lynch added.
Last week MedMen announced the opening of its first Miami Beach, Florida location. The 4,263-square-foot retail store is located on Collins Avenue in the art deco neighborhood of South Beach.
At the end of April, MedMen reported it had canceled its warrants to obtain 97.79 million Class B Subordinate Voting shares of the company. According to the company, the move came after the two consecutive quarters of positive retail cash flow.
MedMen’s shares were trading 2.03% higher at 35 cents per share at the time of writing.
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