Terra Tech Corp (OTCMKTS:TRTC) released its 3Q2016 financial report for the quarter closing September 30, 2016. Derek Peterson, the CEO, commented that they are thrilled to witness their plan to expand company’s retail presence in core target industry boost top line growth, with quarterly revenue reaching $7 million in 3Q2016. It shows a 244% jump compared to the preceding year period.
The results were boosted by sakes from the Blüm Oakland Dispensary and the ‘Western Las Vegas Blüm Dispensary’, both of which started in this year only. In 3Q2016, the company started the ‘South Decatur Boulevard Blüm Dispensary’, which is based in Nevada. Moreover, with the passing of ballots to approve recreational cannabis in California and Nevada, they are well-positioned to boost growth as the market opportunity expands.
The CEO added that in addition to creating a retail presence in California and Nevada, they remain focused on enhancing brand recognition of patented IVXX-branded line of medical cannabis products. They believe that IVXX products are becoming a trusted and renowned medical cannabis brand in the nation, which will offer the company’s brand ‘staying power’ as the cannabis evolves and new players venture into the market.
Terra Tech’s Edible Garden division, which produces sustainably and local cultivated hydroponic foods, posted a strong performance, with revenues jump of 34% YoY for the third quarter. The distribution channels now comprise Wegmans Supermarket and the sales team projects this division to continue to offer steady cash flow to boost growth in the operations in the near term.
The financial performance
Total revenues for 3Q2016 came at $7 million compared to $2 million in the comparable period in 2015. It is a jump of 244% over the quarter closed September 30, 2015. The jump in third quarter revenues was mainly attributable to sales from the Blüm dispensary acquisition in Oakland, which closed in April, sales of IVXX cannabis offerings and Edible Garden goods sales. Third quarter revenues benefited from impressive sales reported by the Western, Las Vegas Blum dispensary.
Gross margin in 3Q2016 was nearly $1.3 million against gross margin of around $370,000 for the third quarter of FY2015.