NORWOOD, Mass., Nov. 6, 2024 – PRESS RELEASE – MariMed Inc., a leading multistate cannabis operator focused on improving lives every day, announced its financial results for the third quarter ended Sept. 30, 2024.
“We reported year-over-year and sequential revenue growth, sequential EBITDA and net income improvement, and we continue to generate positive operating cash flow,” CEO Jon Levine said. “Our wholesale business continues to outpace the industry with another quarter of at least 20% year-over-year growth. Despite continued pressure on U.S. consumers, our retail business transactions grew year-over-year, driven by both same-store sales growth and the new dispensaries opened in the past 12 months. Our heavy investment phase is complete, as are the significant pre-opening expenses we incurred the past several years. We remain highly confident in our ability to grow revenue and profits long-term as our new assets ramp to their potential.”
Third Quarter 2024 Operational Highlights
During the third quarter, the company announced the following developments in the implementation of its strategic growth plan:
July 2: Commenced adult-use sales at its Panacea Wellness dispensary in Quincy, Mass. Additionally, the company announced it received a provisional dual-license for its Tiffin, Ohio, dispensary.July 22: Commenced growing operations in its newly expanded cultivation facility in Hagerstown, Md. The new expansion should lead to a 100% increase in its flower yield, making MariMed one of the largest suppliers of flower in the state. The company has already begun selling flower from this expansion through its retail and wholesale channels.August 7: Appointed Mario Pinho as the company’s chief financial officer, effective Aug. 9, 2024. Pinho is a CPA and finance executive with nearly 25 years of experience leading global organizations through various stages of dynamic growth. Most recently, he was CFO for the U.S. division of Rakuten, the global Internet Services, FinTech, and Mobile company.August 19: Opened Thrive Wellness dispensary in Upper Marlboro, Md., its second adult-use dispensary in the state. The company also owns and operates a Thrive Wellness dispensary in Annapolis.September 24: Commenced adult-use cannabis sales at its Thrive Wellness dispensary in Tiffin, Ohio. The company was also issued a license to open a second adult-use cannabis dispensary, which will be located in the greater Columbus area, the state’s largest metro area.
Other Developments
Subsequent to the end of the third quarter, the company announced the following further developments:
October 14: Commenced growing operations in its new cultivation facility in Mt. Vernon, Ill. The new facility allows the company to grow its award-winning, high-quality Nature’s Heritage flower for distribution throughout the state. The company expects the first harvest to be on shelves in the first quarter of 2025.October 29: Announced the commencement of manufacturing operations in Missouri. The company plans to manufacture and build finished inventory of its award-winning edible and vape brands. MariMed expects to begin wholesale distribution of its branded products throughout the state by the end of November 2024.
“With 2024 nearly behind us, we continue to see margin improvements at our recently opened locations. This sets up 2025 as another year of strong financial results,” Pinho said. “We have several organic catalysts to drive continued momentum for the foreseeable future. Additionally, we maintain one of the strongest balance sheets in the industry, enabling us to capitalize on attractive M&A opportunities in a market with depressed valuations.”
2024 Financial Guidance
MariMed’s initial full-year 2024 financial targets reflected the organic growth of its existing operational assets, excluding any new revenue-generating projects that require regulatory approvals. Delays in securing regulatory approvals for these new assets have led to higher-than-anticipated pre-opening costs and a longer ramp-up period than initially forecasted. Consequently, the company is updating its full-year 2024 financial targets as follows:
Revenue growth: Increased to 6%–8%, from the previous target of 5%–7%.Non-GAAP adjusted EBITDA: Revised to a decline of 18%–20%, compared to the previous target of 0%–2% growth.Capital expenditures: Revised to $11 million, up from the previous target of $10 million. The cannabis company’s ‘heavy investment phase’ is complete, CEO says. Read More
