In This Article:
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Revenue: $40.6 million, increased 4.6% year-on-year and 0.4% sequentially.
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Wholesale Revenue: Grew 3% sequentially to $16.3 million, up 20% year-over-year.
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Adjusted Gross Margin: 42.6%, down from 44.5% year-on-year.
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Adjusted EBITDA: $4.7 million, down from $6.1 million year-on-year, but up from $4.4 million sequentially.
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Cash and Cash Equivalents: $9.8 million at the end of the quarter.
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Operating Cash Flow: $7.2 million year-to-date, a 54% increase from $4.7 million last year.
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Capital Expenditure: $10.9 million year-to-date, down from $14.7 million last year.
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Inventory Turnover: 0.87 times, slightly higher than last quarter.
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Working Capital: $12.1 million, generally in line with the previous quarter.
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Revenue Growth Outlook for 2024: 6% to 8%, up from 5% to 7% previously reported.
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Adjusted EBITDA Outlook for 2024: Expected to be down 18% to 20% compared to flat to up 2% previously.
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CapEx Outlook for 2024: Approximately $11 million, up from $10 million previously reported.
Release Date: November 07, 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 both year-over-year and sequential revenue growth, with a notable improvement in EBITDA and net income.
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The company's wholesale business experienced double-digit growth, marking the ninth consecutive quarter of at least 20% year-over-year growth.
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Betty's edibles brand achieved significant success, becoming the number 7 ranked edible brand in Illinois within 10 months.
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MariMed Inc (MRMD) expanded its brand into new and existing markets, contributing to revenue growth and early signs of improved profitability.
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The company has a strong balance sheet and access to low-cost capital, positioning it well for strategic acquisitions and growth opportunities.
Negative Points
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MariMed Inc (MRMD) faced macroeconomic and industry headwinds, impacting retail revenue and consumer spending.
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The company's non-GAAP adjusted gross margin declined year-over-year due to inflation on input costs, labor, and startup costs.
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Adjusted EBITDA decreased compared to the previous year, primarily due to lower gross margins and increased spending on growth initiatives.
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Pre-opening costs for new assets were higher than expected due to regulatory and construction delays, affecting gross and EBITDA margins.
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The cannabis sector's depressed stock valuations present challenges, although they also offer potential M&A opportunities.
Q & A Highlights
Q: Can you talk about how you think about expanding Betty's, particularly in terms of licensing in other states? A: Jon Levine, CEO, explained that while licensing is a more challenging growth strategy due to the need for reliable partners, MariMed is actively pursuing licensing in states where they are not currently present. They are also looking to expand into additional states through acquisitions or partnerships, aiming to introduce all their top brands, not just Betty's.