Planet 13 Reports Q2 2024 Revenue Growth

LOS ANGELES- Planet 13 Holdings Inc. a vertically integrated multistate cannabis operator, announced its financial results for the second quarter of 2024, highlighting robust revenue growth driven by strategic acquisitions and expanding operations.

For the three-month period ending June 30, 2024, Planet 13 reported revenue of $31.1 million, a 20.3% increase from $25.8 million in the same quarter of 2023. This growth was primarily attributed to the partial integration of VidaCann, the company’s recent acquisition in Florida, as well as strong sales at its flagship Planet 13 SuperStore and Illinois retail location.

Despite the revenue growth, the company recorded a net loss of $8.1 million, compared to a net loss of $4.6 million in the prior year’s quarter. The increased expenses, totaling $19.4 million (up from $15.4 million), were largely due to the consolidation of operations in Florida.

Planet 13’s gross profit for the quarter was $15.8 million, representing a gross margin of 50.9%, up from 46.0% in Q2 2023. The improvement in gross margin was supported by more efficient cultivation practices and a higher proportion of sales from the company’s owned brands.

Adjusted EBITDA for the quarter was $3.2 million, an increase from $2.8 million in the same period last year, reflecting improved cost management and operating leverage.

The company ended the quarter with $26.7 million in cash, up from $11.8 million at the end of 2023, and total assets of $242.4 million, compared to $151.7 million previously. Total liabilities also rose, reaching $84.4 million from $44.1 million, influenced by debt assumed through the VidaCann acquisition.

In operational developments, Planet 13 opened its 27th dispensary in Florida on August 13, 2024, strategically located in Ocala. This marks the company’s 31st dispensary nationwide. The new location is expected to capitalize on high traffic from nearby major retail hubs and a prominent retirement community.

Looking ahead, Planet 13 Co-CEOs Larry Scheffler and Bob Groesbeck expressed optimism about continued growth, citing the expansion of the company’s cultivation and retail network in Florida and the development of its entertainment-focused cannabis brand.

Analysts project significant revenue growth for Planet 13 in the coming years, with estimates suggesting an 83% increase to $180 million in 2024 and further growth to $250 million in 2025.

While the company’s stock has faced challenges, hitting an all-time low before the Q2 report, its strong balance sheet and strategic growth initiatives position it for potential recovery and long-term success.