MariMed Reports Continued Revenue Growth Streak
The TDR Three Key Takeaways of MariMed’s FY 2023Earnings:
- MariMed reports double-digit revenue growth for the sixth year.
- Q4 sees a mix of GAAP net loss with positive adjusted EBITDA.
- MariMed’s strategic expansions bolster long-term growth prospects.
MariMed Inc. (CSE: MRMD, OTCQX: MRMD), a multi-state cannabis operator, has reported overall strong financial performance in yesterday’s earnings release for the fourth quarter and full fiscal year 2023.
Starting with the financials, MariMed experienced a strong year-over-year revenue increase, underscoring consistent growth that has now been reported for the sixth consecutive year. This consistent upward trajectory in revenue generation is particularly noteworthy in the wholesale sector and marks a milestone in new asset openings. While revenues for the quarter stood at $38.9 million, up from $35.8 million in the same period last year, the annual figures also saw a significant leap from $134 million in 2022 to $148.6 million in 2023.
MariMed reported a GAAP net loss of $10.1 million for the quarter. This downturn is mirrored in the year-end figures, with a net loss of $16.0 million compared to the net gain of $13.6 million in 2022. This has been due to executive decisions to invest in the business for future revenue growth. The management is working to find the balance between investment for future earnings growth and the present.
On the operational front, MariMed has been active. The opening of Thrive Dispensary in Casey, Illinois, and the initiation of operations at a new processing facility in Mt. Vernon, Illinois, marks critical milestones. These developments reflect MariMed’s commitment to expanding its operational footprint and enhancing its product offerings. Particularly, the commencement of wholesale operations in Illinois sets a positive tone for 2024, aligning with the company’s growth trajectory and operational strategy. MariMed expands its presence in Maryland announced also yesterday by acquiring an Upper Marlboro dispensary for $5.25 million, pending MCA approval, with the goal of opening its second owned dispensary and obtaining a recreational sales license.
From a financial management perspective, MariMed demonstrated prudence and strategic foresight. The $58.7 million debt refinancing undertaken during the fourth quarter significantly lowered the company’s cost of debt. This development not only reflects astute financial management but also ensures long-term sustainability without diluting shareholder value.
MariMed’s projections for 2024 suggest a cautious yet optimistic outlook. With anticipated revenue growth of 5% to 7% and a flat to slight increase in non-GAAP Adjusted EBITDA, the company appears to be setting realistic expectations amid uncertain market conditions.
MariMed’s latest financial results present strong revenue growth offset by net losses. The company’s strategic expansions and operational achievements demonstrate its commitment to long-term growth. However, the financial challenges highlighted by the GAAP net losses underscore the challenges of growing within the regulations in the cannabis market. As MariMed works through these industry and regulated challenges, its strategic past decisions, particularly in debt management and operational expansion, will help shape its future path as a multi state cannabis integrated company. Want to keep up to date with all of TDR’s research, subscribe to our daily Baked In newsletter.
