MedMen Revenues Hit $130 Million, As California Retail Operations ExpandOctober 29, 2019
Driven by expansion in the California retail market, MedMen saw revenues for its full fiscal year ended in June hit $130 million, up from $40 million a year earlier. The company said its California retail run rate surpassed $110 million on an annual basis, with 13 stores in operation across the Golden State. While revenues rose sharply, MedMen took an adjusted EBITDA loss of $172 million for the fiscal year, although losses contracted by 7% in the fourth quarter compared with the previous quarter.
The company’s California retail revenue totaled $27.5 million for its fiscal fourth quarter, during which it opened a new Sorrento Valley location and was awarded one of six commercial retail licenses available in Pasadena. Overall, MedMen expects to have 30 operating stores in California by the end of calendar 2020.
Expansion is also afoot in Florida, where MedMen has opened stores in West Palm Beach, St. Petersburg, Key West, Pensacola, Jacksonville Beach, Central Orlando, and Tallahassee. The company is slated to open five more locations in the state by the end of this year, bringing its store count to 12. MedMen also plans to roll out its delivery service in Florida by year-end. So far, delivery has been launched in California and Southern Nevada, with e-commerce sales surpassing $5 million in annualized revenue.
Overall, MedMen is now licensed for 70 retail stores across nine states. It currently has 32 locations in operation, also including outlets in New York, Illinois, and Arizona and stores in development in Massachusetts.
While the retail rollout continues, MedMen saw a setback earlier this month when it terminated its planned $682 million acquisition of vertically integrated cannabis group PharmaCann, citing financial headwinds across the cannabis industry. In announcing the full-year results, MedMen co-founder and CEO Adam Bierman said, “changing macroeconomic conditions have led us to refocus our strategy, to reevaluate our assets and to determine where it makes most sense to allocate capital going forward … Our go-forward strategy will therefore focus on three key objectives: optimizing our current retail assets, unlocking the further potential of our factories, and leveraging our omnichannel strategy.”—Daniel MarstellerSubscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning. You will also receive the Cannabis edition as part of your subscription.