Vireo Q1 Revenue Increases 9% YoY, Reports Improvement In Gross Margin

Vireo Health International, Inc. VREO VREOF, a science-focused, multistate cannabis company, reported its financial results for the first quarter of 2021 on Friday.

The Minneapolis-based company generated $13.2 million in GAAP revenue for the first three months of 2021, representing a year-over-year increase of 8.8%.

Excluding former Pennsylvania-based subsidiaries divested to Jushi Holdings Inc.'s JUSH JUSHF, revenue increased by 30% year-over-year and 14% sequentially.

Over the last year, Vireo sold Pennsylvania Medical Solutions LLC to Jushi Inc. — a Jushi Holdings' subsidiary — for $37 million, as well as its equity in Pennsylvania Dispensary Solutions LLC for $5 million in cash.

Kyle Kingsley, M.D., Vireo chairman and CEO, said first-quarter results remain "consistent with the trends from last quarter."

Here's a breakdown of what the first-quarter earnings report showed:

• GAAP gross profit spiked 71.3% year-over-year to $5.6 million or 42.6% of sales.
• Selling, general and administrative expenses amounted to $8 million, accounting for 60.9% of sales, versus $6.9 million, or 56.7% of sales in the corresponding period of 2020.
• Adjusted EBITDA (non-GAAP measure) came in negative at $1.8 million, versus a $3.1 million loss in the first quarter of last year.
• Net loss amounted to $7 million, compared to a net loss of $7.5 million in the first quarter of the prior year.

Over the quarter, Vireo announced the finalization of a grand expansion of its partner's cultivation and processing facility in Arizona. The Tuscon-based facility is poised to boost Arizona Natural Remedies Inc.'s cannabis flower output by almost fivefold.

The company also cut the ribbon on two additional Green Goods Cannabis centers for patients in Minnesota.

"The phase two expansion projects we discussed last quarter in Arizona and Maryland are underway, and our teams are now aggressively focused on finalizing our expansion plans in New York."

Vireo recently launched its first line of ground medical cannabis flower in New York.

Photo Source: PRNewsfoto/Vireo Health, Inc.