Verano Holdings Cannabis Co. Reports $199M In Q2 2021 Revenue Beating Estimates By $4.79M, Remains Profitable, Free Cash-Flow Positive

Cannabis company Verano Holdings Corp. VRNO VRNOF reported Tuesday having generated $199 million in revenue during the second quarter of 2021, beating estimates by $4.79 million.

According to the Chicago-based company, that is a quarter-over-quarter improvement of 39% and a 164% spike from the corresponding quarter of 2020.

“This was a very strong quarter, particularly in topline revenue growth, which reflects our proven ability to execute in both the retail and wholesale verticals,” said George Archos, company CEO and founder.

Financial Highlights

• Net income, including the impact of biological assets, amounted to $7 million.
• Net income, excluding the impact of biological assets, totaled $32 million versus $8 million in the first three months of 2021.
• On an unadjusted basis and excluding the impact of biological assets, gross profit totaled $100 million, accounting for 50% of revenue, compared to $88 million and 61% of revenue in the prior period.
• Selling, general and administrative expenses amounted to $53 million or 27% of revenue, up from $29 million, or 20% of revenue in the first three months of 2021.
• Positive adjusted EBITDA of $81 million, or 41% of revenues.
• Cash flow from operations totaled $29 million, while free cash flow was $4 million.
• As of June 30, the company had $572 million in current assets, $150 million in cash and cash equivalents, working capital of $285 million, and total debt of $131 million.

Operational Highlights

Over the quarter, Verano launched seven new retail locations across Florida, Illinois, New Jersey and Pennsylvania and added nine new dispensaries across Arizona and the Keystone State through several acquisition deals.

“Building on this momentum, we anticipate exiting the year with an annual revenue run rate approaching $1.1 billion,” Archos highlighted.

Currently, Verano runs 83 dispensaries and anticipates having over 90 operational stores by the year-end.

Recent Moves

On Saturday, the company kicked off sales at its 35th MÜV dispensary in Florida, on the heels of acquiring Nevada-based Sierra Well and its two operational dispensaries in Reno and Carson City for $29 million in cash and stock.

Earlier in July, Verano strengthened its retail footprint in Ohio as well with the purchase of Mad River Remedies, LLC, a dispensary in Dayton, bringing the number of operating retail locations within the state to five.

Price Action

Verano’s shares were trading 2.44% lower at $14.75 per share at the time of this writing, mid-morning Tuesday.

Photo: Courtesy of Roberto Valdivia on Unsplash