American cannabis superstore company Planet 13 Holdings Inc. (CSE: PLTH) (OTCQB: PLNHF) is piling up more losses, while not yet keeping pace with growing its sales.
On Tuesday evening, the retailer reported its earnings results for the three months ended Sept. 30, with revenue inching up less than a per cent to US$33 million from US$32.8 million last quarter.
Gross profit fell around 6 per cent to US$17.6 million, or 54 per cent of sales, from US$18.7 million, or 57 per cent of sales.
Operating expenses — excluding non-cash compensation expense and depreciation and amortization — rose 21 per cent to US$15.1 million from US$12.1 million.
Net loss jumped 132 per cent to US$10.2 million from US$4.4 million.
And adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) fell by 50 per cent to US$3.6 million, from US$7.2 million.
Planet 13 nearly halved its cash position, ending the third quarter with US$73.7 million, from US$136.3 million.
Read more: Planet 13’s sales growth outpaced by losses
During the period, the company opened a SuperStore in Orange County, California. It also said that its 49-per-cent owned Illinois subsidiary won a dispensary licence in Chicago.
Planet 13 acquired a cannabis licence in Florda, and doubled the dispensary floor at its flagship location in Las Vegas.
The company continued to drive strong performance in the quarter from its core Vegas operations, co-CEO Larry Scheffler said in a statement.
“Along with our dispensary operations, our product brands are performing well with Trendi vapes seeing 110 per cent dollar sales growth year over year according to Headset. It now makes up about [around] 5 per cent of vape sales and 7 per cent of concentrate sales and HaHa edibles was [around] 14 per cent of edibles sales in the state.”
Co-CEO Bob Groesbeck said the quarter was important for securing future growth.
“We opened our California store, and while initial sales growth has been slower due to headwinds from Covid and untimely road construction around the SuperStore, customer reviews have been outstanding. We expect growth as those headwinds abate,” he said.
“We also won a dispensary licence for the Chicago area giving us a clear path for our next SuperStore, and acquired a Florida license that will allow us to vertically integrate and open multiple neighborhood and SuperStores in the state.”