Verano Holdings $199 Million Q2 Revenue Increases 39% Sequentially on a Pro Forma Basis

Verano Reports Second Quarter 2021 Record Revenue of $199M

Produced substantial revenue growth of 39% sequentially, closed three accretive acquisitions in the quarter while remaining profitable, free-cash-flow positive and furthering investments in CAPEX, CPG brand portfolio.

CHICAGO, Aug. 10, 2021 (GLOBE NEWSWIRE) — Verano Holdings Corp. (CSE: VRNO) (OTCQX: VRNOF) (“Verano” or the “Company”), a leading multi-state cannabis company, today announced its results for the second quarter ended June 30, 2021. The financial information below is reported on a pro forma consolidated basis accounting for the AltMed acquisition as if completed on January 1, 2021, and all currency is in U.S. dollars.

Second Quarter 2021 Financial Summary

  • Revenues increased 39% from the first quarter of 2021, and 164% from the second quarter of 2020 to a record $199 million.
  • Gross profit, on an unadjusted basis and excluding the impact of biological assets, was $100 million, or 50% of revenue, compared to $88 million, or 61% of revenue, in the first quarter of 2021.
  • SG&A expense was $53 million, or 27% of revenue, compared to $29 million, or 20% of revenue, in the first quarter of 2021.
  • Net income, including the impact of biological assets, was $7 million. Excluding the impact of biological assets, net income was $32 million in the second quarter of 2021, compared to $8 million in the first quarter of 2021.
  • Second quarter Adjusted EBITDA was $81 million, or 41% of revenues. EBITDA on an unadjusted basis was $52 million, or 26% of revenues.
  • Cash flow from operations was $29 million, and Free Cash Flow was $4 million.

Recent Operational Highlights

  • In the second quarter, Verano executed on organic expansion plans and brought seven new dispensaries online across its core markets in Florida, Illinois, New Jersey, and Pennsylvania.
  • The Company added nine fully operational, high-volume dispensaries to its portfolio during the second quarter, closing on accretive acquisitions of Territory in Arizona, The Healing Center and TerraVida in Pennsylvania, as well as another permit for three additional dispensaries in Pennsylvania through the NSE transaction.
  • Verano currently has 83¹ operating dispensaries and anticipates surpassing 90 by the end of 2021.
  • The Company’s subordinate voting shares received DTC eligibility, which enhanced liquidity and strengthened its presence in the U.S. capital markets.
  • Shortly after the close of the second quarter, Verano completed acquisitions of Agri-Kind and Agronomed Biologics in Pennsylvania, allowing for vertical benefit realization in the state by adding an active 62,000 square foot, indoor cultivation and production facility, and a permit to build out a second cultivation facility and six additional dispensaries—two of which the Company has already opened.
  • In July, Verano maximized its retail footprint in Ohio with five dispensaries upon closing its acquisition of Mad River Remedies, LLC, a high-volume storefront in Dayton.
  • Also in July, Verano strategically expanded its presence into Northern Nevada with the announcement of its planned acquisition of Sierra Well, which will add approximately 10,000 square feet of active cultivation and production capacity, and two top-performing dispensaries in Reno and Carson City.

Management Commentary

“This was a very strong quarter, particularly in topline revenue growth, which reflects our proven ability to execute in both the retail and wholesale verticals,” said George Archos, Verano CEO and Founder.

We executed exceptionally well on our expansion plans in the second quarter, adding 16 dispensaries to our footprint between new doors opened and acquisitions closed, providing additional runway for growth in core markets such as Arizona, New Jersey, Pennsylvania, Illinois and Florida.

George Archos, Verano CEO and Founder

Building on this momentum, we anticipate exiting the year with an annual revenue run rate approaching $1.1 billion.

Balance Sheet and Liquidity

As of June 30, 2021, the Company’s current assets on a pro forma consolidated basis were $572 million, including cash and cash equivalents of $150 million. The Company had working capital of $285 million and total debt, not including lease liabilities and net of issuance costs, of $131 million.

Total shares outstanding on an as-converted basis are 314,012,373 as of August 9, 2021.

Additional Information

The financial information reported in this news release is based on the unaudited consolidated financial statements of Verano Holdings Corp. and the related management discussion and analysis (“MD&A”) for the three and six months ended June 30, 2021, both of which are available under the Company’s profile on SEDAR at All financial information contained in this news release is qualified in its entirety with reference to such financial statements and MD&A.

Non-IFRS Financial Measures

Verano refers to certain non-IFRS measures to evaluate the performance of the Company. The terms “EBITDA”, “Adjusted EBITDA” and “Free Cash Flow” do not have any standardized meaning prescribed within International Financial Reporting Standards (“IFRS”) and therefore may not be comparable to similar measures presented by other companies. Such measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. EBITDA is calculated as net earnings from operations before interest expense, tax expense, depreciation, and amortization. Adjusted EBITDA is calculated as EBITDA adjusted for one-time expenses related to other expenses, gain from investment in associates and acquisition related costs. Free Cash Flow is calculated as cash flow from operations minus capital expenditures. Reconciliations of the non-IFRS financial measures used in this news release to the most comparable IFRS financial numbers are included tables at the end of this news release.

Management believes that these non-IFRS financial measures provide useful information as a supplement to reported IFRS financial information. Management reviews these non-IFRS financial measures on a regular basis and uses them to evaluate and manage the performance of the Company’s operations. These measures should be evaluated only in conjunction with the Company’s comparable IFRS financial measures.

Conference Call and Webcast

A conference call and audio webcast with analysts and investors will be held today at 8:30 a.m. Eastern Time/7:30 a.m. Central Time, to discuss Verano’s second quarter 2021 financial results and answer questions.

About Verano

Verano is a leading, vertically integrated, multi-state cannabis operator in the U.S., devoted to the ongoing improvement of communal wellness by providing responsible access to regulated cannabis products. With a mission to address vital health and wellness needs, Verano produces a comprehensive suite of premium, innovative cannabis products sold under its trusted portfolio of consumer brands including Verano™, Avexia™, Encore™, and MÜV™. Verano’s portfolio encompasses 14 U.S. States, with active operations in 11, which includes 10 production facilities comprising approximately 832,000 square feet of cultivation (including a 26,000 sq. ft. facility in Massachusetts nearing completion of construction). Verano designs, builds, and operates dispensaries under multiple retail brands including Zen Leaf™ and MÜV™, delivering a superior cannabis shopping experience in both medical and adult-use markets. Learn more at

Original Press Release

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