Planet 13 Holdings (PLTH) (PLNHF) reported its first-quarter earnings after the market closed on May 30. For the quarter ended on March 31, the company posted revenue of $13.8 million, which represents an increase of 286% from $3.6 million in the corresponding quarter of 2018. Sequentially, the company’s revenue rose by 71.4% from $8.3 million in the fourth quarter of 2018.
During the quarter, Planet 13 started the construction of the second phase of its Superstore, which consists of a restaurant, a production facility, a flagship CBD store, and an event center. The company also teamed up with Mike Tyson, former professional boxer, to launch Tyson Ranch at the Superstore. In March, the monthly revenue from the Superstore reached $5 million with average visitors per day crossing 3,000.
Expansion of gross margins
For the quarter, Planet 13 reported gross profits of $7.4 million before biological adjustments, which represents a gross margin of 53.8%. Compared to a gross margin of 45.7% in the first quarter of 2018, the company’s gross margin has improved in the first quarter of 2019.
Planet 13 incurs a loss
During the quarter, Planet 13’s operating expenses, which also includes non-cash expenses, rose 388% to $5.9 million compared to $1.2 million in the first quarter of 2018. The increase in operating costs led the company to post a net loss of $1.2 million compared to profits of $12,741 in the first quarter of 2018.