Marimed Inc. (CSE: MRMD) (OTCQX: MRMD) saw revenue climb 10% in 2022, despite headwinds that have other cannabis companies struggling to keep their heads above water.
In the company’s latest earnings report, for the year ended Dec. 31, 2022, Marimed reported that sales for the year increased to $134 million, compared with $121.5 million the prior year. Net income nearly doubled to $13.5 million in 2022 from $7.2 million the previous year.
“Headwinds continued to challenge the industry, and the economy impacted consumer spending, yet MariMed delivered strong financial results, including positive cash flows from operations for the third consecutive year,” CEO Jon Levine said. “Our balance sheet strength, coupled with our outstanding retail and wholesale operations, high-quality and innovative product portfolio, and exceptional customer service, should fuel accelerated growth in 2023 and beyond.”
For the fourth quarter, sales were up 15% year-over-year to $35.8 million. Marimed recorded net income of $4.8 million in the period, compared with a net loss of $6.4 million a year ago.
The company forecast revenue in excess of $150 million for 2023, driven in part by continuing the acquisition activity its already engaged in this year. Marimed management noted in a news release that it expects to open four new dispensaries by year end: one each in Illinois and Ohio and two in Massachusetts.
Marimed also anticipates opening new wholesale facilities in Illinois and Missouri. The company hopes to buck the industry trend of layoffs with “significant increases to its headcount in 2023 ahead of these new and expanded assets coming online.”
The company obtained $35 million via a secured credit facility with Chicago Atlantic as the lead lender. The funding is critical to support Marimed’s continued expansion plans, as the company had just $9.7 million in cash and cash equivalents at the end of a year that started with $29.7 million on hand.