MedMen Enterprises Inc. (CSE: MMEN) (OTCQX: MMNFF) (FSE: A2JM6N) announced today unaudited systemwide revenue for its fiscal 2019 third quarter ended March 30, 2019. Across the Company’s operations in California, Nevada, New York, Arizona and Illinois, systemwide revenue was US$36.6 million (CA$48.8 million). This represents a 22% quarter-over-quarter increase over its fiscal 2019 second quarter ended December 29, 2018. Systemwide revenue, pro forma for pending acquisitions that have not yet closed, was US$54.9 million (CA$73.2 million) for the quarter. For the third quarter, gross margin across its retail operations was 51%1, compared to 53% in the previous quarter. The Company is expected to post its fiscal 2019 third quarter results in May 2019.
Systemwide retail revenue for the quarter, including revenue from pending announced acquisitions, is based on 32 retail stores that were operational at the end of the quarter. This includes the MedMen San Jose location which rebranded in January through the closing of the Buddy’s acquisition, the MedMen Oak Park location in Illinois which rebranded through the closing of the Seven Point acquisition as well as MedMen’s North Scottsdale and Tempe locations in Arizona which rebranded through the closing of Level Up in February. The operational retail locations, including pending acquisitions, represent 39% of the 82 total stores that the Company is licensed for across 12 states.
Strong systemwide retail revenue for the quarter is primarily attributable to MedMen’s retail expansion in Nevada and Arizona. In Nevada and Arizona, third quarter retail sales increased 34% and 513%, respectively, compared to the previous quarter. In Arizona, the increase was driven by the addition of stores in North Scottsdale and Tempe. In Nevada, MedMen’s Paradise location, the closest dispensary to McCarran Airport, is now the Company’s second highest performing store, with a 39% increase over the previous quarter.
“We will continue to scale our retail footprint in the most strategic and desirable locations, providing us first mover advantage and contributing to MedMen’s top-line growth,” stated Michael Kramer, Chief Financial Officer. “The continued acceleration of sales in markets like Arizona and Nevada, as evidenced by the impressive sales at our Paradise location, demonstrates our ability to replicate the success we’ve achieved in our home state of California across the U.S.”
MedMen’s stores in Southern California’s recreational market continue to perform well with increasing revenue numbers quarter-over-quarter. The Company’s ten operational retail locations reported a combined US$24.9 million (CA$33.2 million) in revenue, which represents a 5% quarter-over-quarter increase.
In addition to growing revenue at its existing locations, the Company has 16 new locations slated to open during calendar year 2019, including 12 locations in Florida, where the Company is licensed for up to 35 locations.
MedMen is a cannabis retailer with operations across the U.S. and flagship stores in Los Angeles, Las Vegas and New York. MedMen’s mission is to provide an unparalleled experience that invites the world to discover the remarkable benefits of cannabis because a world where cannabis is legal and regulated is a safer, healthier and happier world. Learn more at www.medmen.com.
USD/CAD of $0.7497 as of March 30, 2019.
1 Total cost of goods sold across the Company’s retail operations was US$17.1 million during the quarter
2 Includes unaudited net revenue from retail stores and licenses to be acquired through pending acquisitions
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