Cannabis Stocks On The Rise: Schwazze Q2 Revenue Escalates 467% YoY To $30.7M, Reaffirms Full Year Guidance

Schwazze, SHWZ, previously operating as Medicine Man Technologies revealed its financial results for the second quarter on Monday, reporting revenues of $30.7 million, up by 467% from the same quarter of 2020.

Financial Summary for Q2 2021:

• Gross Margin of $14.9 million was 48.5%, 576 bps better than Q2 2020 and 1,099 bps over Q1 2021;
• Adjusted EBITDA of $10.0 million was 32.6% of revenue, 239 bps above Q1 2021;
• Net Income was $4.4 million or $0.08 Diluted Earnings per share compared to a Net Loss in Q2 2020 of ($6.6) million or ($0.16) Diluted Net Loss per share and compared to a Net Loss in Q1 2021 of ($3.6) million or ($0.09) Diluted Net Loss per share;
• Cash Flow from operations for the six-month period was $1.4 million;
• Same-store sales of the seventeen Star Buds dispensaries when compared to last year were $21.5M up 16%.

Other Q2 2021 Highlights 

• Acquisition of Southern Colorado Growers -the acquisition includes 36 acres of land with outdoor as well as indoor cultivation capacity, greenhouse and hoop house cultivation facilities and equipment;
• Acquisition of Drift Dispensaries consists of two marijuana retail stores located in Boulder, Colorado, bringing the total number of Schwazze Colorado dispensaries to nineteen;

"We have continued to see strong revenue growth over last year and are pleased with our adjusted EBITDA results," Justin Dye, CEO of Schwazze stated. "Furthermore, we continue to be encouraged with our retail results, which saw growing sales by 68.9% on a two-year basis. Wholesale results, led by PurpleBee's distillate also had another record-breaking sales quarter. We continue to execute on our retail and manufacturing playbook with excellent results and with the addition of Southern Colorado Growers and Drift, we look forward to continuing to add to our portfolio of companies."

2021 Guidance

The Company is reiterating its 2021 guidance which excludes transactions that are announced but not closed. Annual revenue guidance is $110 million to $125 million and projected annual adjusted EBITDA from $30 million to $36 million.

Price Action 

Schwazze’s shares closed Monday market session 4.36% lower at $2.2 per share. 

Photo: Courtesy of manish panghal on Unsplash