Planet 13 Holdings Inc (CSE:PLTH, OTCQX:PLNHF) has announced its financial results for the second quarter ended June 30, 2022, with revenue rising significantly from the previous quarter.
Second quarter revenue came in at $28.4 million, up 10.6% from Q1 2022, the company said, noting that it recorded a net loss of $2.0 million during the quarter, compared to net loss of $2.1 million in Q1 2022. Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) was $3.0 million.
"Since we reported Q1 we've seen a material weakening of the consumer, which has impacted tourist spending in Nevada. Despite this, we have been able to maintain above 9% retail market share. We are taking steps as a company to improve resiliency in the face of this new macro dynamic," said Larry Scheffler, co-CEO of Planet 13 said in a statement.
READ: Planet 13 awarded conditional Illinois retail licenses
"During the quarter all of our brands held or gained share in Nevada according to research firm Headset. We also launched our owned brands in California for the first time, starting with the widely popular TRENDI products," he added.
"Q2 was a big quarter for advancing our growth initiatives. We secured our cultivation property in Florida. We entered into an option agreement to purchase the remaining ownership in our subsidiary which holds an Illinois dispensary license. In Nevada, consumption lounge legislation was finally passed and we've completed our premium, indoor cultivation expansion and are just waiting on final approvals," commented Bob Groesbeck, the other co-CEO of Planet 13.
"Our expansions are progressing according to plan and it is likely that a year from now we will have doubled our retail and state footprint," he added.
On a year-on-year comparison, Plant 13's revenue in the second quarter which was $28.4 million, down 13.5% from the $32.8 seen in 2Q 2021 while gross profit was $13.8 million compared to $19.0 million. Adjusted EBITDA was $3.0 million as compared to adjusted EBITDA of $7.2 million.
On the balance sheet front, cash stood at $52.6 million in the second quarter while total assets were $268.4 million and total liabilities were $35.5 million.
Planet 13 is a vertically integrated cannabis company, with award-winning cultivation, production and dispensary operations in Las Vegas and in Orange County, California. The company also holds a medical marijuana treatment center license in Florida.
Planet 13's mission is to build a recognizable global brand known for world-class dispensary operations and a creator of innovative cannabis products.
Contact the author at jon.hopkins@proactiveinvestors.com