Verano FY22 Revenue Grows 19%, Driven By Adult Use Sales In NJ And Contributions From FL Store Openings

Verano Holdings Corp. VRNOF VRNO revenue for full year 2022 was $879 million, up 19% from $738 million for full year 2021. The increase in revenue for full year 2022 compared to full year 2021 was driven primarily by strength from adult use sales in New Jersey, in addition to increased retail contributions from Florida store openings.

Q4 2022 Financial Highlights

• Revenue of $226 million increased 7% from $211 million in Q4 2021, and decreased 1% versus the prior quarter.

• Gross profit of $103 million or 46% of revenue, down from $109 million or 52% of revenue for Q4 2021, and down from $123 million or 54% of revenue for third quarter 2022.

• Net loss of $216 million, down from $7 million for fourth quarter 2021, and down from $43 million for third quarter 2022. The increase in net loss for fourth quarter 2022 compared to fourth quarter 2021 was driven by a $229 million impairment charge, primarily of intangible assets related to the Arizona cultivation license and Pennsylvania and Arizona retail reporting units.

• Adjusted EBITDA of $79 million or 35% of revenue, down from $82 million or 39% of revenue for fourth quarter 2021, and down from $82 million or 36% of revenue for third quarter 2022.

Full Year 2022 Financial Highlights

• Gross profit of $423 million or 48% of revenue, up from $331 million or 45% of revenue for full year 2021.

• Net loss of $269 million, down from $58 million for full year 2021.

• Adjusted EBITDA of $324 million or 37% of revenue, which was flat compared to $324 million or 44% of revenue for full year 2021.

• As of December 31, 2022, the company’s current assets were $318 million, including cash and cash equivalents of $85 million. The company had a working capital deficit of $68 million and total debt, net of issuance costs, of $413 million.

“I’m very proud of our results in 2022, highlighted by record revenue and one of the industry’s leading margin profiles, which demonstrate our continued execution in driving efficiencies across the business and positioning ourselves ahead of growth,” stated George Archos, Verano founder, chairman and CEO.

"Since the end of 2021, we grew our retail footprint by adding more than 30 dispensaries across multiple core markets, significantly expanded our brand portfolio by launching a number of differentiated products that cater to a variety of consumers, celebrated the launch of adult use sales across our East Coast footprint in New Jersey and Connecticut, refinanced debt in a rising rate environment to include optionality, and made strategic investments to drive greater efficiencies across the business. Our products also continued to gain popularity with patients and consumers, demonstrated by an increased sell-through rate of Verano-branded products that have elevated our brands into top positions across many core markets, including our leading position in New Jersey."

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