Verano Holdings Corp. (CSE: VRNO) (OTCQX: VRNOF), a constituent in the munKNEE American MSO Pot Stock Index, announced its financial results for the second quarter ended June 30, 2022, yesterday.
 

Q2 Financial Highlights

All financial information is provided in U.S. dollars unless otherwise indicated and compared with the previous quarter.

• Revenue: increased 10.6% to $223.7M
• Gross Profit: declined 0.5% to $98.1M
  • as a % of revenue: declined to 43.9% from 48.8%
• SG&A: increased 11.9% to $100.3M
  • as a % of revenue: increased to 44.8% from 44.3%
• Net Loss in Income: increased to $(9.8)M from $(0.2)M
• Adj. EBITDA: declined 13.6% to $75.3M
  • as a % of revenue: declined to 33.7% from 43.1%
• Cash/ Cash Equiv.: $99.8M
   

Q2 Operational Highlights

• Welcomed New Jersey Governor Phil Murphy at Zen Leaf Elizabeth to celebrate the commencement of adult-use sales in the state, and also launched adult-use sales at the Company’s Zen Leaf Lawrence Township dispensary.
• Exceeded 100-dispensary milestone by expanding the Company’s retail footprint with new store openings that include:
  • five new MÜV dispensaries are located in Marco Island, Hobe Sound, Fort Myers Beach, Ocala, and Winter Haven, FL. 
  • two new Zen Leaf locations in Westover, WV, and Wynnewood, PA.
• Announced exclusive partnership with The Weldon Project’s Mission Green to advance cannabis clemency and advocacy initiatives.
• Relocated Zen Leaf dispensaries in Canton, OH, and Phoenix, AZ to optimize store locations and amenities.
• Launched mobile applications and exclusive rewards programs for Verano’s flagship Zen Leaf and MÜV dispensaries.
   

Management Commentary

George Archos, Verano Founder, and Chief Executive Officer said:

• “...Exceeded a milestone of operating more than 100 dispensaries with the opening of seven new stores in Florida, West Virginia, and Pennsylvania. 
• Announced a partnership with Mission Green to advance cannabis clemency and social equity initiatives.
• Launched mobile applications and rewards programs for our flagship Zen Leaf and MÜV dispensaries.
• I am proud of what we have accomplished since going public last year and remain confident that the strategy and plans we have in place will drive long-term, sustainable growth for Verano.”
   

Stock Performance

The company's stock price:

• went DOWN 42.9% during Q2 (April 1st to June 30th), and
• has gone DOWN 3.7% since then (as of August 12th),
• and is now DOWN 56.5% YTD,
• and DOWN 78.4% from its peak price in 2021.

In comparison, the munKNEE American MSO Pot Stock Index, consisting of the 13 largest such stocks by market capitalization,

• was DOWN 49.7% during the April to June period, 
• has gone UP 13.2% since then (as of August 12th), but
• is still DOWN 51.8% YTD,
• and DOWN 77.8% from its peak price in 2021.

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