A prominent multi-state cannabis firm, Verano Holdings Corp. VRNOF Stock, today released its financial results for the Q3 that ended September 30, 2022 (“Q3 2022”), which were prepared by U.S. General Accepted Accounting Principles (“U.S. GAAP”). U.S. GAAP was used to compile comparability figures for the third quarter ending September 30, 2021 (“Q3 2021”)
Financial Highlights for the Third Quarter of 2022
- The Company’s revenue rose 10% year-over-year to $228 million in the 3rd Q of 2022, up 2% over the previous quarter.
- Cannabis sales for adult use increased revenue in New Jersey compared to last year.
- In the third quarter of 2022, the gross profit was $123 million, or 54% of sales, compared to $98 million, or 44% of revenue in the preceding quarter and $98 million, or 48% in the third quarter of 2021.
- As a result of top-line growth and reduced inventory step-up from acquisitions, gross profit increased year-over-year.
- In the third quarter of 2022, SG&A expenses were $86 million, or 38% of revenue, compared with $100 million, or 45% of revenue, in the previous quarter.
- Retail outlets were the primary driver of SG&A growth versus the prior quarter.
- A net loss of $43 million was recorded, with a loss of $10 million in the previous quarter and a loss of $13 million a year ago.
- Compared to the prior quarter, adjusted EBITDA1 increased to $82 million, or 36% of sales.
- During the nine months ending September 30, 2022, the Company generated $65 million in cash flow from operations.
Highlights of the Third Quarter of 2022 in Terms of Operations
- As part of the retail growth in Florida, 11 new MÜV dispensaries were opened during the quarter.
- New Zen Leaf dispensaries opened in Wheeling and Clarksburg, WV, and New Kensington, PA; Zen Leaf Jessup moved to Elkridge in Maryland to optimize the location and retail space; Zen Leaf Neptune opened adult use sales on the Jersey Shore to maximize the footprint in New Jersey.
- The Verano signature flower brand is now available in Arizona, Florida, Massachusetts, and Pennsylvania dispensaries.
- The Company launched Savvy, a new flower and extract brand that appeals to value-conscious patients and customers.
- Licensed Ric Flair’s new cannabis product, Ric Flair Drip Cannabis, to 11 markets through Mike Tyson’s Tyson 2.0 cannabis firm.
- Inaugurated Lawrence Hirsh as a new member of BOD and chair of the Audit Committee.
- A new dispensary and active growing facility were added to Nevada’s presence through the acquisition of Sierra Well.
- Contributions to the Lynn Sage Breast Cancer Foundation were started for the second year during Breast Cancer Awareness Month.
Liquidity and Financial Statements
In September 2022, the Company’s current assets were $295 million, including $76 million in cash and cash equivalents. The working capital deficit was $89 million, and the total debt, net of issuance expenses, was $392 million.
There were 336,162,222 Class A subordinate voting shares outstanding as of September 30, 2022, including Class B proportional voting shares converted to Class A subordinate voting shares.
