Image Source: Pixabay
 

This article provides Verano Holdings' (VRNOF)  Q1 financial results for the period ending March 31st, 2024.
 

Q1 Financial Highlights

(All currency numbers are in USD and compared to the previous quarter.)

• Revenue: DOWN 6.8% to $221.3M
• Gross Profit: DOWN 3.9% to $113.0M
  • as a % of revenue: UP to 51.0% from 49.6%
• SG&A Expense: Increased 4.7% to $90.0M
  • as a % of revenue: Increased to 40.7% from 36.3%
• Adjusted EBITDA: DOWN 9.4% to $66.5M
  • as a % of revenue: Declined to 30.0% from 30.9%
• Net Profit (Loss): Improved by 93.8% to $(4.8)M
  • as a % of revenue: Improved to (2.2)% from (30.6)%
• Cash/Cash Equivalent: UP by 10.9% to $194M

For a detailed look at all the financial metrics related to Verano in the last quarter and for every year going back to 2018 go here.
 

2024 Guidance

The Company issued flat to low single-digit revenue growth guidance for the second quarter 2024.
 

Key Q1 Operational Highlights

Expanded the Company's retail footprint by:

• opening a dispensary in Florida raising the Company's total Florida footprint to 74 statewide locations

• and 2 in Pennsylvania to number 18 in the state

Expanded the Company's cannabis membership club, Cabbage Club^™, which offers members the opportunity to take advantage of exclusive benefits, into Illinois and New Jersey.
 

Management Commentary

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

“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.

I remain confident and excited in what Verano can achieve in 2024 and beyond given:

• 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”

More By This Author:

AI Small Cap Stocks Portfolio UP 2.5% Last Week: Still Down 28.5% YTD
The 7 AI Categories Declined, On Average, The First Week Of May
Clinical-Stage BioTech Drug Stocks Portfolio Jumped 7% In First Week Of May