In This Article:
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Revenue: $40.4 million, increased 11% year over year.
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Wholesale Revenue: $15.9 million, 9% sequential growth.
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Retail Revenue: $23.6 million, 6% sequential growth.
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Gross Margin: 42.9%, down from 43.8% in Q1 2024.
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Adjusted EBITDA: $4.4 million, down from $6.3 million in Q2 2023.
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Cash and Cash Equivalents: $10.2 million, down from $14.6 million at 2023 year-end.
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Working Capital: $12.4 million.
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Cash Flow from Operations: $6.4 million year-to-date.
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CapEx: $8.3 million year-to-date.
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Retail Gross Margin Improvement in Illinois: Improved by 145 basis points year-over-year and 250 basis points sequentially.
Release Date: August 08, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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MariMed Inc (MRMD) reported strong revenue growth both year-over-year and sequentially, with a significant increase in wholesale business across core markets.
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The company achieved its seventh consecutive quarter of double-digit transaction growth in retail sales on a year-over-year basis.
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MariMed Inc (MRMD) is seeing margin improvements in Illinois, with retail gross margins improving by 145 basis points year-over-year and 250 basis points sequentially.
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The company successfully launched adult-use sales at its Quincy dispensary in Massachusetts and is close to commencing operations in Missouri.
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MariMed Inc (MRMD) is tracking ahead of its revenue guidance and has upside opportunities for the second half of the year, indicating potential for further revenue growth.
Negative Points
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The company's margins are currently under pressure due to long-term investments and consumer weaknesses in the retail sector, including cannabis.
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MariMed Inc (MRMD) reported a decline in non-GAAP adjusted gross margin from 43.8% in Q1 2024 to 42.9% in Q2 2024, primarily due to higher input costs and ramp-up costs.
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Adjusted EBITDA decreased from $6.3 million in Q2 2023 to $4.4 million in Q2 2024, impacted by lower gross margins and higher operating expenses.
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The company experienced a decline in cash and cash equivalents from $14.6 million at the end of 2023 to $10.2 million at the end of Q2 2024, due to increased cash expenditures on acquisitions and inventory.
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MariMed Inc (MRMD) faces delays in the commencement of cultivation at its Mt. Vernon facility in Illinois, pushing the expected launch of its flower brand to Q1 2025.
Q & A Highlights
Q: How has the newly opened Quincy store performed, and are the new grow rooms in Maryland meeting expectations? A: Jon Levine, CEO, stated that the Quincy store started slow but is seeing daily and weekly increases, and they are optimistic about its future performance. The grow rooms in Maryland are performing well, with strong flower growth and excellent environmental conditions.