MariMed Revenue Grows 10.7% QoQ, Hires New CFO And Remains On Track To Deliver 2024 Financial Targets

Multi-state cannabis operator MariMed MRMD MRMD disclosed its financial results for the second quarter ended June 30, 2024, revealing revenue of $40.4 million, compared to $36.5 million in the same period last year.

"With the first half of the year in the books, I'm pleased to say we remain on track to deliver our 2024 financial targets," stated CEO Jon Levine. "Revenue growth in the second quarter of 2024 was very strong both year-over-year and sequentially, led by another tremendous quarter for our wholesale business. Our retail business also turned the corner, with a 24% increase in transactions year-over-year. While we continue to navigate the growth phase of our life cycle, and our results reflect a corresponding drag on margins and cash flow, we are pleased that we are already seeing margin improvements, particularly in our Illinois dispensaries. We are highly confident we will realize margin expansion and increased cash flow long-term as our new assets deliver their full revenue potential."

During the second quarter, the company closed the acquisition of Allgreens Dispensary, its fifth dispensary in Illinois. The Massachusetts-based company said that the green light from the Illinois Department of Financial & Professional Regulation for the acquisition allows MariMed to fully consolidate the financial results of the company’s Thrive-branded dispensary in Casey, Illinois. The dispensary had previously operated under a managed services agreement.

Q2 Financial Summary

• Gross profit was $16.91 million, compared to $16.38 million in the same period of 2023.
• Gross margin was 41.8%, compared to 44.8% in the comparable quarter of last year.
• Net loss amounted to $1.64 million, compared to $935,000 in the second quarter of 2023.
• Total operating expenses were $15.95 million, compared to $12.83 million in the same quarter of the prior year.
• Adjusted EBITDA was a gain of $4.37 million, compared to adjusted EBITDA of $6.31 million in the second quarter of 2023.
• At the end of the reporting period on June 30, MariMed had $10.19 million in cash and cash equivalents, compared to $14.63 million on Dec. 31.

Read Also: MariMed Is On A Roll: Partners With Two Iconic Music Venues In Boston, Acquires Another Illinois Cannabis Dispensary

2024 Guidance

MariMed’s full-year 2024 financial targets are based on the organic growth of its existing operating assets and do not include new revenue-generating projects requiring regulatory approvals. The company believes this conservative approach to offering financial targets allows investors and analysts to focus on key operating milestones versus discussions around issues outside the company’s control. As such, the company’s full-year 2024 financial targets remain at:

• Revenue growth of 5% to 7%;
• Non-GAAP Adjusted EBITDA growth of 0% to 2%;
• Capital expenditures of $10 million.

New CFO

MariMed also announced the appointment of Mario Pinho to chief financial officer, effective August 9, 2024. Pinho is a certified public accountant and senior finance executive with nearly 25 years of experience leading global organizations through various stages of dynamic growth.

Before joining MariMed, Pinho worked at Rakuten USA since 2012 where he held several executive finance roles, the most recent as CFO since 2016. His previous roles include vice president and controller of global merchant services for American Express AXP, senior manager, department of professional practice, for KPMG and manager of internal audit at AGF Management Limited AGFMF.

"I am thrilled to welcome Mario to the MariMed executive leadership team," said Levine. "His extensive experience in financial reporting, mergers and acquisitions, SOX reporting, and investor relations will be invaluable as we continue to implement our strategic growth plan."

Price Action

MariMed shares closed Wednesday's market session 5.63% higher at $0.169 per share.

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Photo: Courtesy of Kyrylo Vasyliev via Shutterstock