MedMen Enterprises Posts Tenfold Revenue Growth In Q1

American cannabis company MedMen Enterprises Inc MMNFF was trading higher Friday after reporting fiscal first-quarter results. Although the company's revenue surged, its net loss expanded versus same period of the previous year.

What Happened

The company disclosed revenue of $21.46 billion for the quarter, which signifies an increase of 1,094 percent on the year. At the same time, MedMen's net loss widened to $12.48 billion from $5.31 billion in the first quarter of fiscal 2018. 

Among other highlights from the quarter, MedMen posted annualized sales per square foot of $6,188 across eight stores in Southern California. Similarly, the company had a conversion rate of 82 percent. 

Why It's Important

MedMen is one of the largest distributors of cannabis in the U.S. The company has a market share of 5.3 percent in California, according to the California Bureau of Cannabis Control. MedMen is set to have 69 retail locations nationwide once all pending transactions are closed and production facilities in 12 states, covering around half of the legal cannabis industry in the country. 

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What's Next

MedMen plans to execute on its expansion in the U.S. and has signed a number of deals in the last couple of months that are slated for completion in the near future.

In October, MedMen entered the Illinois market by acquiring a licensed medical dispensary in Oak Park.

It also has acquired PharmaCann in an all-stock deal valued at $682 million. The transaction is expected to close in six to 12 months and will double MedMen's presence to 12 states and expand its footprint to 67 retail locations. 

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