Verano Holdings Corp. of Chicago (OTC VRNOF) reported fourth-quarter revenues of $218.2 Million on Thursday. The multistate operator experienced more congestion in Illinois and New Jersey.
Yahoo Finance’s data shows that revenue was just $700k short of analysts’ expectations, which were $218.9m.
Verano’s fourth quarter net loss was $272.7million, more than a tripling of the $77.2million loss from the previous year. A large part of this increased loss was attributed to the $327.7 millions in impairment charges relating to fixed assets and licenses, as well as goodwill.
George Archos (Chairman and CEO of Verano) said: “I am extremely proud to our team’s resilience. 2024 was a year when we set the groundwork to improve and optimize our core businesses to drive long-term business growth.”
He continued, “During a dynamic year 2024 we expanded our business in Arizona and entered Virginia, opened 17 new dispensaries across six markets of importance, and celebrated adult sales in Ohio.
Verano has reported revenue totaling $878.6 Million for its full-year, just under the analyst consensus estimate of $879.4 Million and down 6.6% from $938.5Million in 2023. The firm cited retail competition, particularly in Illinois and New Jersey, as well as a temporary shift in Florida’s cultivation output for the drop.
Verano still reported an adjusted EBITDA for the fourth quarter of $62.9M, or 29%, of revenues. Cash flow for the quarter increased to $ 44 million, compared with $32 millions in the fourth quarter 2023.
The company attributes the decline in gross profit margin to the revenue decreases. SG&A expenses fell slightly to $83.7 million, or 38% of revenue, versus $85.7 million, or 36% of revenue, in the year-ago quarter.
Verano has plans for a reduction in capital expenditures between 25 million dollars and 40 million dollars by 2025. That’s a big cut from 2024 when Verano spent $99 millions.
Verano’s cash balance at the end of 2024 was $87.8 millions and its debt $414,000,000.