Vireo Growth, (CSE VREO), (OTCQX VREOF), reported record revenues for the fiscal year 2024. This exceeded analysts’ expectations and increased its cash to support a “transformational 2025” fueled by anticipated adult-use marijuana sales and mergers.
Minneapolis-based marijuana company proclaimed Tuesday its total revenue in the fourth quarter was $25 million. The figure surpassed the analyst average of $23.9 millions Yahoo Finance. The quarterly revenue figure was 3.5% higher than the same period a year ago.
Vireo’s annual revenue for the entire year was $99.4 millions, lower than Yahoo’s average of $102.4 million. This was still an increase of 15.4% in revenue per year (excluding discontinued activities).
From a loss of $25.5 in fiscal 2023, the company’s net loss has increased to $28 for 2024. Vireo’s fourth-quarter net loss was $15.7m, a significant increase from the $4.6m loss during the same time period in 2023.
A large part of the company’s increased loss was attributed to $4 million in transaction costs related to its planned mergers. John Mazarakis, the CEO of the company, emphasized its operational improvements and prospects.
John Mazarakis, the CEO of the firm, said, “We’re pleased to have achieved record revenue in 2024 and to be closing out with a revenue run-rate of $100,000,000.” The fourth-quarter results have been impacted by $4.2m in one-off transaction costs related to our mergers. However, we are pleased with the continued performance of our operations.
Vireo’s cash position was boosted by a private equity offering at the end of December, which ended up raising around $81 million. Cash was $91.6m at the end 2024. That’s up from 16 million dollars in 2023.
Vireo’s improved cash position is a result of its recent agreement to purchase four existing operators for nearly $400,000,000 in an all stock deal. Vireo will have 48 dispensaries in seven states and more than one million square feet for cultivation when the deals are completed.
According to projections, the combined company will have a pro forma revenue of $394 millions and an EBITDA figure of $94millions. The balance sheet shows $99 million of cash, against $78million of net debt.
Mazarakis co-founded Chicago Atlantic, now the largest shareholder of Vireo. He was appointed Vireo CEO in December when Vireo announced its merger. He maintains local management at every acquired company as part of his strategy.
We believe that our current liquidity will support better access to capital, and as such we are patient and willing to take advantage of opportunities to invest in and innovate in order to grow.
Maryland is Vireo’s most-expanding market. Its retail revenues grew by nearly 57% from $27.5 to $44.6 million, while wholesale sales grew by 55%. Minnesota’s operations, meanwhile, showed a modest increase in retail sales, but wholesale revenues grew from $286,936 to $25,300.
Mazarakis cited several growth drivers in 2025. These include the mergers that are pending, investments made in existing markets and Minnesota’s adult-use marijuana sales. Acquisition deals should close in 2025 pending regulatory and shareholder approvals.