The following is a summary of the Medicine Man Technologies, Inc. (SHWZ) Q2 2024 Earnings Call Transcript:
Financial Performance:
Reported Q2 2024 total revenue of $43.2 million, marking a 2% increase.
Gross profit was $19 million, equating to 44% of total revenue, a decrease from 54% year-over-year primarily due to pricing pressure and increased third-party purchasing.
Operating loss was $2.7 million, with adjusted EBITDA at $9 million or 21% of revenue. Last year, EBITDA was 33% of revenue.Cash and cash equivalents stood at $12.3 million, with total debt at $163.4 million as of June 30, 2024.
Business Progress:
Closed three underperforming dispensaries and a distribution center in Colorado to prioritize core operations.
Opened a new medical and recreational dispensary in Bernalillo, New Mexico, under the Our Greenleaf banner, bringing the total to 35 dispensaries.
Implemented new LED lighting in cultivation facilities aimed at a double-digit yield improvement.
Announced debt restructuring to extend maturities for financial flexibility.
Opportunities:
Plans to refine retail strategy and drive further operating efficiencies across retail, cultivation, and manufacturing operations.
Positioned for growth and stronger profitability in the second half of 2024 through ongoing operational optimizations and new product introductions.
Risks:
Anticipates net new store growth shifting from positive to negative in the latter half of the year due to regulatory actions increasing enforcement and accelerating compliance checks resulting in numerous closures.
More details: MEDICINE MAN TECHNOLOGIES INC IR
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