MariMed Expects 112% Revenue Increase In Preliminary Earnings Report

Multi-state cannabis and hemp operator MariMed Inc. MRMD projects that it will generate revenue of $7.5 million in the first quarter. That's a 112% increase compared with the first quarter of 2019.

MariMed confirmed that these are preliminary, or unaudited, results for the quarter as of March 31, 2020.

Gross profits were preliminarily disclosed of $4.6 million, doubling its results on a year-over-year basis.

The Massachusetts-based company cited the coronavirus pandemic as the reason behind its 45-day extension to file a 10-Q form with the U.S. Securities and Exchange Commission.

Revenue derived from licensing fees and MariMed branded products increased 34% on a year-over-year basis and are expected to experience significant growth as 2020 unfolds.

Massachusetts dispensaries are not considered essential due to shelter-in-place orders by the Governor, but MariMed expects to start commercializing adult-use cannabis in the next months pending final inspections by Massachusetts authorities.

“The success of our consolidation strategy contributed to our sales momentum in the first quarter of 2020, enabling us to grow quarterly revenues by 112% compared to the prior-year period,” said Bob Fireman, CEO of MariMed. “We are pleased with the consistently strong performances reported by our consolidated cannabis businesses in Illinois and Massachusetts as well as an increase in licensing revenues, in line with our strategic growth plan."

Fireman also expects to see strong revenue growth from further consolidation of MariMed's client businesses as well as the expansion of its product portfolio into additional states.