Q1 2024 Medicine Man Technologies Inc Earnings Call Transcript
Key Points
- Medicine Man Technologies Inc (SHWZ) reported a 4% increase in total revenue to $41.6 million in Q1 2024, driven by growth from new stores.
- The company's wholesale business showed quarter-over-quarter growth, achieving 30% total door penetration across Colorado and New Mexico.
- Medicine Man Technologies Inc (SHWZ) is benefiting from regulatory actions in New Mexico, which are leading to a reduction in the number of competing stores, potentially strengthening the company's market position.
- The DEA's proposal to reclassify cannabis from Schedule I to Schedule III is expected to reduce the tax burden on the company and the industry, potentially improving profitability.
- The company is actively optimizing its asset base to drive operating efficiencies and maximize output, which includes plans to consolidate cultivation facilities and eliminate underperforming stores.
- Despite revenue growth, Medicine Man Technologies Inc (SHWZ) experienced a decrease in gross margin to 43% in Q1 2024 from 55% the previous year, primarily due to pricing pressure in New Mexico and a higher medical sales mix in Colorado.
- Operating expenses increased to $20.6 million in Q1 2024 from $16.2 million in the same period last year, largely due to personnel expenses and costs associated with additional stores.
- The company reported a loss from operations of $2.7 million in Q1 2024, compared to an income from operations of $5.6 million last year.
- Adjusted EBITDA significantly decreased to $7.3 million or 18% of revenue in Q1 2024, down from $14.5 million or 36% of revenue in the previous year.
- Medicine Man Technologies Inc (SHWZ) is facing intense competition in both Colorado and New Mexico, which continues to put pressure on pricing and margins.
Good afternoon. My name is Yna, and I will be your conference operator today. At this time, I would like to welcome everyone to Schwazze first-quarter 2024 conference call.
All lines have been placed on mute to prevent any background noise. Following their prepared remarks, management will take questions submitted via the web link found on Schwazze Investor Relations website and in the earnings press release.
I would now like to hand the conference over to the company's external Head of Investor Relations, Sean Mansouri with Elevate IR. Thank you. Please go ahead.
Thank you. Good afternoon, and welcome to Schwazze's first-quarter 2024 earnings conference call. Joining me on the call are Forrest Hoffmaster, interim CEO and CFO; and Justin Dye, Chairman of the Board. The company will begin with prepared remarks and then we will open the call for Q&A.
I would like to remind you that management's prepared remarks and answers to your submitted questions may contain forward-looking
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
