Today, MedMen Enterprise (MMNFF) posted unaudited system-wide revenues of $29.9 million for the second quarter of fiscal 2019, which ended on December 29, 2018. Year-over-year, the company’s revenue grew by 870.8% from $3.08 million in the second quarter of fiscal 2018. Sequentially, the company’s revenue increased by 39.3% from $21.5 million in the first quarter of fiscal 2019. The company also reported an improvement in gross margin across its retail operations to 54% from 45% in the last quarter.
For the quarter, the company’s total pro forma revenue, which includes revenue of $19.6 million from pending acquisitions, stood at $49.5 million. By the end of the quarter, the company operated 31 retail stores, which includes pending acquisitions.
MedMen’s revenue growth during the quarter was driven by a strong performance from Southern California’s recreational market. In California, the company operates eight stores, which together generated revenue of $23.7 million, representing 79.3% of the company’s total revenue.
Quarter-over-quarter, the revenue from California increased by 27%. Adam Bierman, CEO and co-founder of MedMen, stated, “California is the prize of the cannabis industry and the performance of our stores, quarter-over-quarter, is a reflection of our continued execution in our home state.”
Currently, MedMen operates 31 stores including pending acquisitions, which form just 40% of the 77 licenses it is allowed to operate in 12 states. So, the company has a huge scope to expand its operations. In 2019, the company plans to open stores in 16 new locations, which includes 12 in Florida, where the company has licenses to operate 30 stores.
Since the announcement of its first-quarter earnings on November 29, MedMen stock price has declined by 12.7% as of its January 16 closing price. During the same period, its peers Planet 13 Holdings (PLNHF), iAnthus Capital Holdings (ITHUF), and Wayland Group (MRRCF) have returned -26.2%, -5.6%, and -1.7%, respectively.