Debra Borchardt
Verano Holdings Corp. (CSE: VRNO) (OTCQX: VRNOF) announced its financial results for the third quarter ending September 30, 2022, as revenue increased 2% sequentially and 10% year-over-year to $228 million. The FactSet estimate that averages 12 analysts was for revenue of $227 million. Verano attributed the revenue growth to strength from adult use sales in New Jersey.
The company delivered a third-quarter net loss of $43 million, versus a net loss of $10 million in the second quarter and the net loss of $13 million in last year’s third quarter. The company took a $69 million hit for income taxes versus last year’s $27 million. The net loss per share was 13 cents.
“I am very pleased with our performance in the third quarter and how our team demonstrated focus and adaptability in driving our business forward in an increasingly challenging environment,” said George Archos, Verano Founder, Chairman and Chief Executive Officer. “In the face of economic headwinds, industry dynamics and legislative uncertainty, we delivered revenue growth and strong Adjusted EBITDA margins, underscoring our focus on superior operations and efficiency. We significantly bolstered our growing product portfolio by scaling our signature Verano brand across core markets, introducing our value flower and extract brand Savvy, launching Ric Flair’s Ric Flair Drip Cannabis line in partnership with Tyson 2.0, and most recently, releasing a low-dose, high-function edibles line, BITS, which combine tailored adaptogens with cannabinoids and 5 mg of THC to appeal to a broad base of cannabis consumers. We also continue to see positive results in New Jersey, where we’ve further cemented our position as a market leader, evidenced by our strong retail performance and growing wholesale business. Finally, we are also pleased to have completed the refinancing of our $350 million credit facility, which gives us flexibility in our capital structure and the ability to reduce our cost of capital. I remain optimistic and confident in our business as we continue to maintain focus on driving operational quality and efficiency as we further position Verano for future growth.”
The company continues to have a solid cash cushion of $76 million. Verano also reminded investors that it refinanced a $350 million credit facility with enhanced flexibility to reduce capital costs.
Expansion
The company continues to expand at a blistering speed. Verano opened 11 new MÜV dispensaries in Florida during the quarter. It also opened new Zen Leaf dispensaries in Wheeling and Clarksburg, WV, and New Kensington, PA; relocated Zen Leaf Jessup to Elkridge in Maryland to a better location and retail space. Verano also increased its New Jersey footprint with the introduction of adult-use sales at Zen Leaf Neptune on the Jersey Shore.
Following the end of the quarter, Verano opened another two dispensaries in Florida. The company now has 119 dispensaries and 14 cultivation and processing facilities with more than 1 million square feet of cultivation capacity.
