Verano Holdings Corp. (CSE:VRNO) (OTCQX:VRNOF) a multi-state cannabis operator, reported Tuesday its second-quarter preliminary earnings results, revealing revenue of $224 million, which is up by 12% from the same period in 2021.
The report comes on the heels of the Chicago-based cannabis company’s launch of Savvy, a new brand featuring larger-format cannabis products, catering to more value-oriented patients and consumers. Savvy will be available in MÜV and Zen Leaf dispensaries beginning September 2022 followed by additional third-party retail locations across six core markets - Arizona, Illinois, Massachusetts, Maryland, Nevada and Ohio - with additional launches planned in the future for New Jersey and Pennsylvania.
“I am very proud of our performance this quarter alongside the strategic investments we made to ensure our high operational standards touch every part of our business,” stated George Archos, Verano founder and CEO. “Despite ongoing macroeconomic headwinds, we achieved a number of wins throughout the quarter, including the successful launch of adult use sales in New Jersey, exceeding a milestone of operating more than 100 dispensaries following 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, and launched mobile applications and rewards programs for our flagship Zen Leaf and MÜV dispensaries.”
2022 Second Quarter Financial Highlights
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Q2 2022 gross profit was $98 million or 44% of revenue, compared to $69 million or 35% of revenue in the second quarter 2021.
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Q2 2022 net loss was $10 million or $0.03 per share, compared to a loss of $30 million in the second quarter 2021, or $0.10 per share.
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Q2 2022 EBITDA on an unadjusted basis was $48 million or 22% of revenue, and Adjusted EBITDA was $76 million or 34% of revenue, compared to Adjusted EBITDA of $80.61 million in the same quarter of 2021.
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Cash flow from operations for the six months ended June 30, 2022 was $44 million.
2022 Second Quarter Operational Highlights
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On April 21, 2022, Verano 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.
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Exceeded 100-dispensary milestone by expanding the company’s retail footprint with new store openings that include:
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five new MÜV dispensaries located in Marco Island, Hobe Sound, Fort Myers Beach, Ocala, and Winter Haven, FL.
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two new Zen Leaf locations in Westover, WV and Wynnewood, PA.
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Announced exclusive partnership with The Weldon Project’s Mission Green to advance cannabis clemency and advocacy initiatives.
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Relocated Zen Leaf dispensaries in Canton, OH and Phoenix, AZ to optimize store locations and amenities.
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Launched mobile applications and exclusive rewards programs for Verano’s flagship Zen Leaf and MÜV dispensaries.
Price Action
Verano shares closed Monday market session 0.42% higher at $5.49 per share.
Photo: Courtesy of Kindel Media by Pexels
