Staff
Planet 13 Holdings Inc. (OTCQX:PLNHF) announced preliminary 2020 third-quarter revenue of $22.8 million a 110% increase over the second quarter. The company did not release any profit or loss figures for the quarter. The company delivered a net loss of $4 million in the second quarter. The gross margin was ~50% in the third quarter.
Planet 13 said that the store served ~1,625 average customers per day in-store with an average ticket of ~$124. In June of 2019, the store was serving over 2,000 customers a day, so there is clearly a decline in the store traffic as tourism is yet to return to the old levels. The average ticket in June 2019 was $88, so the ticket size is increasing even if the traffic is lower.
“Q3 has proven Planet 13’s resilience and strength. We drove an impressive rebound in sales and a record quarter by making operational improvements in response to COVID-19. The improvements have led to higher average tickets and conversion rate despite the reduced tourist traffic. Along with these operational improvements at the store, our delivery and curbside pickup have expanded our revenue from Las Vegas residents,” said Larry Scheffler Co-CEO of Planet 13. “We are opening our neighborhood dispensary in Q4 and continuing to drive increased delivery and curbside sales to increase our share of sales to Las Vegas residents.”
The company also reported the following statistics:
- In-Store revenue of $18.5 million in Q3 2020 compared to $16.3 million in Q3 2019, an increase of 13.0%.
- Delivery & Curbside revenue of $3.4 million in Q3 2020 compared to $295 thousand in Q3 2019.
- Wholesale & Other revenue of $1.0 million in Q3 2020 compared to $61 thousand in Q3 2019.
- Total revenue of $22.8 million in Q3 2020 compared to $16.7 million in Q3 2019, an increase of 36.5%
Separately, Akerna (NASDAQ: KERN) reported that for the customers using its MJ Platform in Nevada that in May, cannabis sales started to recover, which could be attributed to the reopening of restaurants and shops. “Adult use sales experienced a 52% increase in average daily sales when compared to April. It is estimated that cannabis retailers experienced a 35% potential loss in total sales between March 21 and May 31, when compared to January and February averages.”
Bob Groesbeck Co-CEO of Planet 13 added, “We started wholesaling our products at the end of June, and are rapidly gaining momentum. We are now in 33 dispensaries across the state and expect this to grow as our brands continue to gain name recognition. Between wholesale and retail sales our edible, concentrate, and beverage lines are among the top 10 selling SKUs statewide. In Q3, inhouse brands made up 25% of cannabis sales. In order to achieve the Company’s goal of delivering a minimum of 50% of revenue from our in-house brands, we are transitioning our newly purchased indoor cultivation facility to our in-house strains to increase sales of our popular, high-margin, Medizin flower brand.”
