Verano Holdings Reports 2023 Financial Outcomes

LOS ANGELES- Verano Holdings Corp a  player in the multi-state cannabis industry, has disclosed its financial performance for the fourth quarter and the entirety of 2023, demonstrating resilience and strategic growth despite facing industry-wide challenges. The company’s revenue for the year reached $938 million, marking a 7% increase from the previous year, while its net cash from operating activities saw a 16% rise, totaling $110 million. These figures underscore Verano’s solid operational execution and its ability to generate substantial free cash flow, which amounted to $73 million for the year, in line with its projections.

However, the year was not without its hurdles. Verano adjusted its financial results following a reassessment of the fair value of its cultivation facility in Massachusetts, which led to a $9 million impairment charge. This charge impacted the company’s net income and certain financial ratios but did not significantly detract from its overall financial health.

For the closing quarter of 2023, Verano reported revenues of $237 million, a modest 5% increase from the same period in the previous year, though it experienced a slight dip from the preceding quarter. The company’s gross profit stood at $118 million, or 50% of revenue, highlighting its efficient operational management and strong product offerings. Despite these gains, the quarter saw a net loss of $77 million, primarily due to the impairment charge, translating to -33% of revenue. Nonetheless, Verano maintained robust profitability and cash generation capabilities, as evidenced by its adjusted EBITDA of $73 million, or 31% of revenue.

Throughout 2023, Verano has been proactive in expanding its market footprint and diversifying its product portfolio. The company made significant strides by opening new dispensaries in strategic locations, including Florida, Pennsylvania, and Connecticut, thereby bolstering its presence in the competitive cannabis landscape. Additionally, Verano launched new product lines and embarked on strategic initiatives aimed at capturing a larger market share and enhancing consumer engagement.

These developments reflect Verano Holdings Corp.’s commitment to navigating the complexities of the cannabis industry, optimizing its operations, and pursuing growth opportunities despite facing financial and regulatory challenges. As the company continues to adapt and innovate, it remains poised to strengthen its industry standing and deliver value to its stakeholders in the evolving cannabis market.