Pot Stock Verano CEO Says 'The Sky Is The Limit' For Its 2024 Achievements Despite Higher Net Loss QoQ

The multi-state cannabis operator Verano Holdings Corp. (Cboe CA: VRNO) VRNOF reported its financial results Thursday for the fourth quarter and full year ended Dec. 31, disclosing revenue of $237 million, up by 5% year-over-year, lower by 1% compared to the prior quarter.

"I’m incredibly proud of our performance in 2023, highlighted by key wins across all aspects of the business,” stated George Archos, Verano founder and chief executive officer. “As excitement and anticipation build in the industry, 2024 has the potential to be a game-changing year, and Verano is well positioned to continue capitalizing on growth opportunities both in the current regulatory environment and from any state or federal reform. While we've never been dependent on legislation to drive sustained growth, with adult use imminent in Ohio, on the horizon in Florida and Pennsylvania, and the growing anticipation of a federal rescheduling decision, there is limitless potential for Verano. I'm thankful for all that our team accomplished in 2023, and believe the sky is the limit for what we can achieve in 2024 and beyond."

Q4 Financial Summary Versus Q3 

• Gross profit of $118 million or 50% of revenue, compared to $133 million or 55% of revenue.
• Net loss of $(73) million or (31)% of revenue, versus $(18) million.
• Adjusted EBITDA amounted to $73 million or 31% of revenue, which compares to $89 million or 37% of revenue.
• Net cash provided by operating activities of $32 million, compared to $37 million.
• Capital expenditures of $10 million, in line with the previous quarter.
• Free cash flow of $23 million, versus $27 million.

Full Year 2023 Financial Highlights Versus Full Year 2022

• Revenue of $938 million, versus $879 million.
• Gross profit of $475 million or 51% of revenue, compared to $423 million or 48% of revenue.
• Net loss of $(113) million or (12)% of revenue, versus net loss of $(269) million,
• Adjusted EBITDA of $305 million or 32% of revenue, which compares to $324 million or 37% of revenue.
• Free cash flow of $73 million, compared to $(25) million.
• As of December 31, 2023, the company's current assets were $394 million, including cash and cash equivalents of $175 million, compared to $318 million and $85 million, respectively, at the end of Dec. 2022. Verano had a working capital deficit of $(18) million and total debt, net of issuance costs, of $446 million, compared to $(68) million and $413 million, respectively.

2024 Guidance

The company issued first-quarter 2024 revenue guidance of a 5-7% decline versus the prior year period as the growing dispensary count in New Jersey continues to normalize.

Price Action

Verano shares closed Wednesday market session 2.21% lower at $5.38 per share.

See Also: Another Push To Legalize Recreational Cannabis In West Virginia Amid Fentanyl Crisis

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