MariMed, Inc. (OTCQX: MRMD) reported its financial and operating results for the quarter ending June 30, 2021, as revenue increased 239% to $32.6 million versus last year and jumped 32% sequentially. MariMed also delivered a net income of $7.6 million in the second quarter of 2021 versus a net loss of $1.1 million in the second quarter of 2020, and net income of $4.3 million versus the first quarter of 2021. The company also increased its revenue guidance in 2021 to $118 million.
“We are extremely pleased with our continued improving financial performance during the second quarter,” said Bob Fireman, CEO, and President of MariMed. “We continue to report some of the strongest revenue and EBIDTA growth in the entire cannabis industry. Our strong financial position is the result of our operational excellence combined with our financial discipline. I could not be more confident in our ability to maintain our trajectory to be a top-tier MSO and deliver improved stockholder value as we continue to execute on our Strategic Plan.”
The reported EBITDA of $12.3 million, was the sixth sequential quarter of positive EBITDA growth. Reported EBITDA increased 440% versus the second quarter of 2020, and an increase of 61% versus the first quarter of 2021. The reported adjusted EBITDA of $13.9 million, a 391% increase in the second quarter of 2020 versus an increase of 73% in the first quarter of 2021.
Massachusetts for the Win
MariMed noted that its solid quarter was due to a significant increase in wholesale sales, particularly in Massachusetts, where it benefited from higher production at the New Bedford, MA cultivation and manufacturing facility. The company said its retail locations in Massachusetts and Illinois also saw strong growth. MariMed said the Panacea Wellness dispensary in Middleborough, MA experienced higher customer counts and increasing revenue throughout the quarter. “Commencing operations in May, Thrive Metropolis, the fourth MariMed dispensary in southern Illinois, exceeded expectations. MariMed’s three other Thrive branded dispensaries in the state, located in Anna, Harrisburg and Mt. Vernon, all had strong quarterly results.”
The company also saw an increase in branded product sales and licensing fees from the product portfolio, including its Betty’s Eddies vegan chews brand, Nature’s Heritage premium flower, Kalm Fusion precision dose chewable tablets brand, and others. MariMed brands are now available in six states and Puerto Rico. Betty’s Eddies is the #1 cannabis product brand in Massachusetts and Maryland, according to BDSA data.
MariMed management said in a statement that it will move forward with its previously announced Consolidation Plan, that would consolidate the company’s existing clients into the public company. It also plans on increasing revenues in existing states, by increasing cultivation and production capacity and developing new assets within those states. The company plans on expanding through new license applications and M&A and building the portfolio brands.
“In light of MariMed’s significant organic growth, driven by the strong performance of our retail stores in Illinois and Massachusetts, stronger than expected wholesale sales, and other contributing factors, we are confident raising 2021 guidance,” said Jon Levine, MariMed’s Chief Financial Officer. “Based on these factors, we are increasing our 2021 revenue guidance to $118 million, EBITDA to $32 million, and including Adjusted EBITDA guidance for the first time of $42 million.”