Marijuana firm MedMen records $63.1 million loss in 3Q, slashes executive salaries

(This article has been updated to include details of the cost-cutting measures being undertaken by the company, including a reduction of executive salaries.)

Los Angeles-based MedMen reported revenue of $36.6 million and a net loss of $63.1 million for its fiscal third quarter, ended March 30, 2019.

The performance marks the second quarter in a row that the multistate cannabis operator saw its sales climb and losses scale back.

As part of a broader “profitability initiative” aimed at curbing administrative expenses, MedMen CEO Adam Bierman and President Andrew Modlin have entered into revised employment agreements with annual salaries of $50,000, the company said in a news release.

Bierman had been earning a reported $1.5 million annually.

The retailer reported revenue of $29.9 million and a net loss of $64.6 million in the previous quarter.

Year-over-year, revenue was up 156% – though the company’s recorded loss was significantly higher than the $16.8 million reported for the fiscal third quarter of 2018.

During the current quarter, sales rose sequentially by 22%, with retail operations in California contributing $24.9 million.

Results were also boosted by a 9% reduction in corporate selling as well as general and administrative costs from the second quarter.

The retailer, which is a defendant in three separate lawsuits, trades on the Canadian Securities Exchange under the ticker symbol MMEN.

More details on the fiscal third quarter results can be found here.

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6 comments on “Marijuana firm MedMen records $63.1 million loss in 3Q, slashes executive salaries
  1. Tony Gentile on

    “The performance marks the second quarter in a row that the multistate cannabis operator saw its sales climb and losses scale back.” I see nationwide dominance before year’s end!

    Reply
  2. david on

    ”Los Angeles-based MedMen reported revenue of $36.6 million and a net loss of $63.1 million for its fiscal third quarter, ended March 30, 2019.”

    Crashed and burnt. Sometimes greed does not pay! Well at least for the stock holders. I always wondered why they wasted incredible amounts of money on pretty girls and massive booths at the Cannabis shows. Hey it’s not their money!

    Reply
      • Ital Boogie on

        I visited a very nice MedMen dispensary in LA last week. Flower is relegated to the back of the store as if an afterthought, while the vaping and edibles are all over the place. When I asked a sales persone which pot she recommended for this or that, and which was organic sungrown, she went into a tirade on how indoor was so much better than outdoor pot… At this point, I was no longer interested.

        To me if it’s not sungrown, fully organic, it’s plastic weed

        Reply

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