Canadian cannabis retailer, Meta Growth (CAN:META / US:NACNF) has reported its fiscal Q4 and full year results for 2019. Operating results are up to August 31, 2019.
Q4 revenue of CAD$17.1 million represents the fourth consecutive quarter of revenue growth. It took Meta Growth’s full year revenue to CAD$54.1 million. The Company is also reporting gross margins of 33% and an Adjusted EBITDA Margin of 14% for its retail cannabis stores.
Meta Growth now has 30 operating retail stores and 36 licensed retail locations. CEO Mark Goliger summed up the year for investors.
While we are very proud of our industry leading achievements to date, we recognize that we are just at the beginning stages of a very dynamic and high growth industry, and look forward to capitalizing on the many opportunities we have planned for FY 2020.”
Meta Growth is Canada’s industry leader in cannabis retailing. After trading as low as CAD$0.155 on November 18th, the stock has been on a tear. It opened today at CAD$0.38 and is currently trading at $0.37.
Even with the gains, the Company is only trading a little above its revenues, with a current market cap of CAD$68.4 million.
The Seed Investor is bullish on Canadian cannabis retailers as Cannabis 2.0 products begin to reach store shelves. Along with this, Ontario’s new cannabis licensing framework is expected to result in nearly 200 new licenses in 2020.
Ontario is Canada’s most populous province with a population of 14.5 million people. With a total of only 25 cannabis stores to date, Ontario’s failure to open more stores has been the single greatest factor limiting cannabis revenues.
In the near term, sluggish overall cannabis sales in Canada through September and October (the most recent months reported) should limit META’s revenue growth in the upcoming quarter. However, as Cannabis 2.0 adds both new products and 3 million new consumers to the Canadian cannabis market, Canadian cannabis retail should soon have the wind at its back in 2020.
DISCLOSURE: The writer holds shares in Meta Growth.
Published at Tue, 24 Dec 2019 17:53:58 +0000