Verano Announces First Quarter 2024 Financial Results
- Generated $221 Million in Revenue, Exceeding Guidance
- Increased Gross Profit Margin by Nearly 300 Basis Points Year Over Year
CHICAGO, May 08, 2024 (GLOBE NEWSWIRE) — Verano Holdings Corp. (Cboe CA: VRNO) (OTCQX: VRNOF) (“Verano” or the “Company”), a leading multi-state cannabis company, today announced its financial results for the first quarter ended March 31, 2024, which were prepared in accordance with U.S. Generally Accepted Accounting Principles (“U.S. GAAP”).
First Quarter 2024 Financial Highlights
First Quarter 2024 Financial Highlights
- Revenue of $221 million, a decrease of 3% year-over-year, and a decrease of 7% versus the prior quarter, exceeding Company guidance.
- Gross profit of $113 million or 51% of revenue.
- SG&A expense of $90 million or 41% of revenue.
- Net loss of $5 million or 2% of revenue.
- Adjusted EBITDA¹ of $67 million or 30% of revenue.
- Net cash provided by operating activities of $31 million.
- Free Cash Flow² of $21 million.
- Capital expenditures of $10 million.
Management Commentary
“I am tremendously proud of the strong foundation we’ve built in the first quarter, which positions Verano to capitalize on what may be one of the most transformative years for legal cannabis in our nation’s history,” said George Archos, Verano founder and Chief Executive Officer. “While we’ve never built our business based on legislative assumptions, we have tremendous upside across all of our markets to take advantage of the massive potential catalysts that lie ahead in 2024. With adult use imminent in Ohio, confirmed on the November ballot in Florida, and on the horizon in Pennsylvania, we have significant opportunities in these core Verano markets where we currently operate nearly 100 retail dispensaries alone. If fully approved, layering on DEA rescheduling would have also enabled us to save an estimated $80 million in tax payments in 2023, allowing us to reinvest back into the business, and take swift action towards listing on a U.S. exchange if permitted.”
With the growing strength of our wholesale business in key markets, disruptive innovation demonstrated by our launch of the nation’s first dispensary membership model in Cabbage Club, state and federal catalysts on the horizon, and our team’s proven operational experience and agility converting medical to adult use markets throughout our history, I remain confident and excited in what Verano can achieve in 2024 and beyond.
George Archos, CEO
