Cannabis Retailer MedMen Reports Q2 Results and Sinks

It was this week that marijuana retailer MedMen Enterprises Inc. reported second quarter financial results that failed to impress investors.

The California-based company reported a widening net loss on Wednesday and saw its stock halted near the end of the regular trading session.

For the fiscal second-quarter, MedMen reported that net loss attributable to shareholders doubled to $40.6 million, which amounts to 9 cents a share, versus a loss of $18.7 million, or 23 cents a share in the year-ago quarter. The company also reported a comprehensive loss from continuing operations of $74.8 million, growing from $63.2 million in the year-ago period.

Revenue during the quarter rose 11% sequentially to $44.1 million, and 50% from the year-ago quarter. Analysts had expected revenue of $49.5 million. Revenue figures do not include the Company’s operations in Arizona, which are in the process of being divested and are classified as discontinued operations in the Company’s financials.

“We feel positive about the progress made while remaining aware there is still substantial work to be done. The business is focused on the execution of a strategy to streamline operations, strengthen its balance sheet and bring in additional capital. The sustained power of the brand and consistent consumer loyalty is a regular reminder of our strengths and the opportunities within reach,” said Ben Rose, executive chairman of the Board and Chief Investment Officer of Wicklow Capital.

“This is a pivotal time for the Company where we have the opportunity to re-assess the business and narrow the focus on what we do best – retail, to continue to cut costs and to execute on four-wall economics with a path to profitability,” said Ryan Lissack, Interim Chief Executive Officer. “I look forward to transitioning the company into its next chapter, which will be defined by financial discipline and strategic growth to drive long-term value creation for the Company and its stakeholders.”

The company’s previous CEO Adam Bierman stepped down on February 1st. The company also laid off about 40% of its corporate workforce back in November and December.

Disclaimer: We have no position in Medmen Enterprises Inc. (OTCMKTS: MMNFF) and have not been compensated for this article.