MariMed Exceeds Forecasted Revenue Growth and Records 17th Consecutive Quarter of Positive Adjusted EBITDA

The TDR Three Key Takeaways regarding MariMed

  1. MariMed reports a 10.2% year-over-year revenue increase in Q1, surpassing expectations.
  2. MariMed has achieved positive quarterly Adjusted EBITDA for 17 consecutive quarters.
  3. The company is well on its way to meet a full-year revenue projection of $157.52 million in 2024.

MariMed Inc. (CSE: MRMD, OTCQX: MRMD), a multi-state cannabis operator, disclosed its financial results for the first quarter ending March 31, 2024. The company is engaged in developing, owning, and managing state-licensed cannabis facilities from seed to sale. These facilities are noted for their adherence to high standards in horticulture, cannabis cultivation, production of cannabis-infused products, and dispensary operations. MariMed has developed proprietary formulations that are used in its popular and critically acclaimed products and brands. These brands include Betty’s Eddies, Nature’s Heritage, InHouse, Bubby’s Baked, K Fusion, Kalm Fusion, and Vibations, all trademarks MariMed owns.

“With the first quarter now in the books, I’m pleased to say we are on track with our strategic plan and financial targets,” said Jon Levine, Chief Executive Officer. “The tremendous growth in our wholesale business was undoubtedly the quarter’s highlight. I am proud that once again, MariMed outperformed our competition in every market in which we operate, including Illinois. The strong revenue growth led to our 17th consecutive quarter of positive adjusted EBITDA.”

MariMed Inc. reported a 10.2% increase in revenue compared to the previous year, with adjusted EBITDA reaching $4.7 million. As stated by CEO Jon Levine, this marks the 17th consecutive quarter of positive adjusted EBITDA. The company calculates adjusted EBITDA by starting with income (loss) from operations in accordance with GAAP and excluding several specific items. These exclusions include depreciation of fixed assets, amortization of acquired intangible assets, impairment or write-downs of intangible assets, stock-based compensation, legal settlement costs, and expenses related to acquisitions and other activities.

For 2024, MariMed Inc. is committed to enhancing the organic growth of its established operations, setting clear financial goals without factoring in the uncertain revenue from new, pending regulatory projects. This approach enables a focused analysis on the company’s core business achievements, steering clear of potential distractions from unconfirmed ventures. MariMed aims to boost its revenue by 5% to 7%, maintain its Non-GAAP Adjusted EBITDA growth between 0% and 2%, and allocate $10 million for capital improvements. After recording a revenue of $148.6 million in 2023, MariMed targets a rise to $157.52 million in 2024. Having already secured 24% of this target in the first quarter alone, MariMed is on a solid path to achieving its financial objectives for the year.

During the first quarter, MariMed Inc. reported several key milestones as part of its strategic growth initiatives:

On January 2, MariMed initiated sales of its award-winning branded products through its new wholesale operation in Illinois. The company’s brands, such as Betty’s Eddies, Bubby’s Baked, Vibations, and InHouse, are now available in 135 dispensaries across the state.

On February 26, Thrive Dispensary Casey, an adult-use dispensary managed by MariMed since its opening in the fall of 2023, received its Certificate of Occupancy from the Illinois Cannabis Control Commission. This approval allowed the dispensary to move from a temporary location to its new permanent facility, where it began operations in March 2024.

On March 6, MariMed announced it is expanding in Maryland with the acquisition of its second dispensary in the state. The company had signed a definitive agreement on February 1 to purchase the operating assets of Our Community Wellness & Compassionate Care Center, Inc., a licensed medical dispensary operator. The acquisition was finalized on April 9. The company plans to open this new dispensary in Upper Marlboro and start adult-use sales pending regulatory approval.

Following the first quarter, MariMed Inc. continued to execute its growth strategy with new developments:

On April 10, MariMed entered into a partnership with two renowned Boston music venues, MGM Music Hall Fenway and Citizens House of Blues Boston. Through this partnership, MariMed’s Nature’s Heritage brand becomes the exclusive cannabis sponsor for both venues. The sponsorship will provide over one million consumer impressions through onsite experiences, in-venue advertising, and digital advertising.

On April 11, MariMed completed the acquisition of Thrive Dispensary in Casey, Illinois. The Illinois Department of Financial & Professional Regulation approved the license transfer, enabling MariMed to integrate Thrive Dispensary’s financials into its accounts fully. Previously, MariMed had been managing the dispensary under a Managed Services Agreement.

The first quarter is showing good progress for growth. Year-over-year growth of over 10% is higher than the project of 5 to 7% year over year. The 17th consecutive quarter of positive adjusted EBITDA is also notable. We will keep our readers posted on MariMed’s progress. Want to keep up to date with all of TDR’s research and news, subscribe to our daily Baked In newsletter. 

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