MedMen Enterprises Inc (OTC: MMNFF) (CSE: MMEN) reported first-quarter results Wednesday as the cannabis company embarks on cost-cutting efforts that include 190 layoffs.
MedMen reported revenue of $44 million, up by 105% on a year-over-year basis.
The first-quarter gross margin was 52%, in contrast to 50% in the prior quarter. The adjusted EBITDA loss was $22.2 million.
Corporate SG&A was reported at $30.6 million, representing $31.6 million in annual savings since the company's cost-cutting efforts kicked off.
“We entered fiscal 2020 on a mission to build a more nimble and financially flexible MedMen,” Adam Bierman, MedMen co-founder and CEO, said in a statement.
“As we right-size our organization and implement an intensified focus on free cash flow generation, our business will become more efficient, in turn allowing us to better serve our stakeholders. Through the successful execution of these goals, we expect MedMen will be EBITDA positive by the end of calendar year 2020.”
In November, MedMen announced a 90-day plan to achieve positive EBITDA by the end of calendar 2020. The aim is to focus on core markets and reduce corporate SG&A, driving asset-level EBITDA, limiting cash outlays and reinvesting in the company's culture.
The company began the process of laying off 20% of its employees and said it saved an extra $20 million by reducing investments in marketing and technology.
MedMen shares were down 10.35% at 44 cents at the time of publication Wednesday.
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