Cannabis Co. Verano Posts Strong 2020 Financials, Expects To Close Accretive Acquisitions In 2021

Verano Holdings Corp. VRNO VRNOF reported Thursday its revenue amounted to $355 million in fiscal 2020, representing a 196% year-over-year increase.

On an unadjusted basis and not including the impact of biological assets, gross profit was $224 million. It accounted for 63% of 2020 revenue, compared to a gross profit of $51 million, or 43% of revenue, in 2019.

Selling, general and administrative expenses for the full year were $85 million, compared to $56 million in the year before, or 24% and 46% of revenue, respectively.

The Chicago-based company posted a net income of $245 million in 2020, representing a 2350% spike year-over-year.

2020 EBITDA on an unadjusted basis came in positive, at $153 million. Adjusted EBITDA hit $170 million.

Cash flow from operations amounted to $151 million.

As of December 31:

• The company had $321 million in assets, including cash and cash equivalents of $31 million.
• Its working capital was $178 million.
• Debt stood at $38 million.

“Our 2020 results, in combination with progress, made year-to-date in 2021, are a testament to our team’s proven ability to execute on our focused growth strategy both efficiently and profitably, including accretive M&A activity to fortify our presence in core markets, as well as material organic expansion across our national footprint at the retail level and in cultivation and production capacity,” George Archos, the company’s co-founder, and CEO said.

Recent Moves

During 2020 and 2021, Verano expanded its retail footprint by launching 36 retail locations, bringing it to a total of 73 stores, including several recently purchased dispensaries in Illinois, Pennsylvania, and Arizona, as well as the Local Joint store in Phoenix.

In February, the company debuted on the Canadian Securities Exchange through a reverse takeover of Majesta Minerals Inc. (better known as its merger with AltMed), ahead of announcing and closing several acquisitions, expected to enhance its presence in core markets.

Photo by Esteban Lopez on Unsplash